If the economy prospers, shares of Fitbit (ticker symbol: FIT) are expected to return 11%. But, if the economy falters, shares of Fitbit are expected to return 5%. According to equity analysts at Bank of America, over the next year, there is a 60% chance of an economic upturn and a 40% likelihood of an economic downturn. Given this information, Fitbit has a variance of returns equal to:

Multiple Choice

• 0.001980

• 0.000864

• 0.000860

• 0.000240

• 0.029550