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 4%. 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

• 0.001505

• 0.000266

• 0.000834

• 0.001154

• 0.033345