What Is the Variance of the Expected Returns on This

What is the variance of the expected returns on this stock?
$\begin{array}{lrr}\text { State of the Economy } & \text { Probability of } & \text { Rate of Return if } \\& \text { State of Economy } & \text { state occurs }\\\text { Boom } & .40& 15\% \\\text { Normal } & .60 &19 \%\end{array}$

A) 1.21%
B) 1.42%
C) 1.56%
D) 3.84%
E) 4.03%

Correct Answer:

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