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%.

---

Definitions:

Industrial

Related to the production of goods and services, especially those produced in factories or large-scale enterprises.

Degree of Power

Refers to the level or extent of control and influence one individual or entity has over others, often within the context of organizational or social hierarchies.

Contingencies of Power

Factors that affect the power of an individual or group, often dependent on the particular circumstances or context.

Forecasting

involves making predictions about future trends, events, or behaviors based on historical data and analysis, used in planning and decision-making processes.