If the economy booms, RTF, Inc. stock is expected to return 12%. If the economy goes into a recessionary period, then RTF is expected to only return 5%. The probability of a boom is 60% while the probability of a recession is 40%. What is the variance of the returns on RTF, Inc. stock? Select one:

a. .029394

b. .001120

c. .000760

d. .000864

e. .000200