q 26 The rate of return on the common stock of a company is expected to be 13.75% in a boom economy, 8.75% in a normal economy, and only 3.25% in a recessionary economy. The probabilities of these economic states are 31.0% for a boom, 48.0% for a normal economy, and 21.0% for a recession. What is the variance of the returns on the common stock of the company?