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If the economy booms, RTF, Inc. stock is expected to return 10 percent. If the economy goes into a recessionary period, then RTF is expected

If the economy booms, RTF, Inc. stock is expected to return 10 percent. If the economy goes into a recessionary period, then RTF is expected to only return 4 percent. The probability of a boom is 64 percent while the probability of a recession is 36 percent. What is the variance of the returns on RTF, Inc. stock?

0.000784

0.001426

0.000829

0.000216

0.027736

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