Use the Information for the Question(s)below

question 91

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 a portfolio of 20 type S firms is closest to:

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

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Definitions:

Ecological Niches

The roles and positions species hold in their environment, encompassing their habitat, activities, and interactions with other species.

Biodiversity

The variety and variability of life forms within a given ecosystem, region, or the entire planet, crucial for ecological balance and resilience.

Non-native Species

Organisms that have been introduced into an environment where they are not historically found, often causing disruption to local ecosystems.