To calculate the variance of the returns, we need to follow these steps:

1. Calculate the Mean (Average) Return: $\text{Mean} = \frac{17.98 + (-5.22) + 20.45}{3} = \frac{33.21}{3} = 11.07\%$

2. Calculate Each Return's Deviation from the Mean and Square it:

   • For $17.98\%$: $(17.98 - 11.07)^2 = 6.91^2 = 47.7681$
   • For $-5.22\%$: $(-5.22 - 11.07)^2 = -16.29^2 = 265.0641$
   • For $20.45\%$: $(20.45 - 11.07)^2 = 9.38^2 = 87.9844$

3. Calculate the Variance: $\text{Variance} = \frac{47.7681 + 265.0641 + 87.9844}{3} = \frac{400.8166}{3} = 133.6055$

4. Convert Variance to Decimal Form (if the options require it): Since the original returns are given as percentages, the variance here represents $13.36055\%$. Converting it to decimal form by dividing by $100$: $\text{Variance in decimal} = 0.02005$

The correct answer is: 0.02005

Would you like a deeper breakdown of these calculations or further explanation on variance?

Here are five related questions for further exploration:

1. How would the variance change if another year's return is included?
2. What is the standard deviation of the returns for these three years?
3. How is variance interpreted in the context of financial risk?
4. How does variance differ when we use population versus sample variance?
5. What is the relationship between variance and the coefficient of variation?

Tip: Variance measures the spread of data points. In finance, a higher variance indicates greater risk or volatility in returns.