Use the Information for the Question(s)below

question 2

Multiple Choice

Use the information for the question(s) below.
Consider an economy with two types of firms,S and I.S firms always move together,but I firms move independently of each other.For both types of firm there is a 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return.
-The standard deviation for the return on an individual firm is closest to:

• A)23.0%.
• B)5.25%.
• C)15.0%.
• D)10.0%.

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Definitions:

Birth Defects

Congenital abnormalities or conditions that are present at birth, which can affect the physical or cognitive development of a child.

Diseases

Conditions that impair normal body functions and are characterized by specific symptoms and signs.

Quantity

The quantity of a substance or abstract item that does not need a measurement unit to be quantified.

Quality

An attribute or characteristic that determines the degree of excellence or superiority of something.