Use the following information to answer Part E

State of Economy	Probability	ABC Company Expected Return	XYZ Company Expected Return
Very Poor	0.40	-2%	-6%
Poor	0.30	0%	0%
Good	0.15	10%	11%
Very Good	0.15	14%	20%
Expected Return		2.80%	2.25%

A) Calculate the variance of ABC. (2 Mark) Please answer as a decimal to 4 decimal places.