The rate of return on the common stock of a company is expected to be 12.00% in a boom economy, 7.00% in a normal economy, and only 1.50% in a recessionary economy. The probabilities of these economic states are 24.0% for a boom, 62.0% for a normal economy, and 14.0% for a recession. What is the variance of the returns on the common stock of the company?

Question 10 options:

0.000955

0.000980

0.001005

0.001030

0.001055