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:

Level Playing Field

A concept involving fair competition where no individual or group has an advantage over others, ensuring equity and fairness in opportunities.

Section 504

A part of the Rehabilitation Act of 1973 that prohibits discrimination against individuals with disabilities in programs that receive federal financial assistance.

Ethical Decision Making

The process of choosing actions that are consistent with one’s principles and values in a moral context.

Employment

The condition of working for pay in a job, profession, or business, whether part-time or full-time.