The rate of return on the common stock of Flowers by Flo is expected to be 14% in a boom economy, 8% in a normal economy, and only 2% in a recessionary economy. The probabilities of these economic states are 20% for a boom, 60% for a normal economy, and 20% for a recession. What is the variance of the returns on the common stock of Flowers by Flo?

a. .001044

b. 0.00144

c. .001863

d. .002001

e. .002471