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If the economy booms, RTF, Incorporated, stock is expected to return 13 percent. If the economy goes into a recessionary period, then RTF is expected

If the economy booms, RTF, Incorporated, stock is expected to return 13 percent. If the economy goes into a recessionary period, then RTF is expected to only return 2 percent. The probability of a boom is 82 percent while the probability of a recession is 18 percent. What is the variance of the returns on RTF, Incorporated, stock?

Multiple Choice .001143 .001464 .055100 .001786 .042261

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