If the economy booms, RTF, Inc. stock is expected to return 12 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?

0.001544

0.001523

0.000888

0.000312

0.038748