The rate of return on the common stock of a company is expected to be 12.25% in a boom economy, 7.25% in a normal economy, and only 1.75% in a recessionary economy. The probabilities of these economic states are 25.0% for a boom, 60.0% for a normal economy, and 15.0% for a recession. What is the variance of the returns on the common stock of the company?