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 4%. According to equity analysts at Bank of America, over the next year, there is a 63% chance of an economic upturn and a 37% likelihood of an economic downturn. Given this information, Fitbit has a variance of returns equal to:

Multiple Choice

• 0.000904

• 0.001465

• 0.037668

• 0.000296

• 0.001492