Use the Information for the Question(s)below

question 19

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 portfolio of 20 type I firms is closest to:

• A)5.25%
• B)5.10%
• C)15.0%
• D)23.0%

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Definitions:

Superior Mesenteric Artery

A major artery arising from the aorta that supplies blood to portions of the small intestine, cecum, and part of the colon.

Celiac Trunk

A major artery that supplies blood to the stomach, spleen, liver, esophagus, and pancreas.

Anterior Tibial Artery

A significant artery in the lower leg that provides blood to the anterior compartment of the leg and dorsal surface of the foot.

Femoral Artery

A major blood vessel in the thigh that supplies blood to the lower limb.