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 61 percent while the probability of a recession is 39 percent. What is the variance of the returns on RTF, Inc. stock?

• 0.000856
• 0.000766
• 0.000234
• 0.028946
• 0.001544