You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.

Project Boom (50%) Recession (50%)

A $20 -$10

B -$10 $20

C $30 -$30

D $50 $50

The variance in the returns of project B is:

Multiple Choice

• 900.
• 225.
• 0.
• 1,600