What Is the Variance of the Returns on a Security

What is the variance of the returns on a security given the following information?
$\begin{array}{lcc}\text { State of the Economy }&\text { Probability}&\text { E(R) }\\\text { Boom } & .25 & 16\% \\\text { Normal } & .45 & 10\% \\\text { Recession } & .30 & -8 \%\end{array}$

A) 48.18%
B) 56.23%
C) 64.38%
D) 72.87%
E) 90.99%

Correct Answer:

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