If the economy prospers, shares of Fitbit (ticker symbol: FIT) are expected to return 12%. But, if the economy falters, shares of Fitbit are expected to return 3%. According to equity analysts at Bank of America, over the next year, there is a 62% chance of an economic upturn and a 38% likelihood of an economic downturn. Given this information, Fitbit has a variance of returns equal to:

Multiple Choice

• 0.042888

• 0.000342

• 0.001908

• 0.001129

• 0.000858