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:

Behavioristic

Relating to or concerned with the study of behavior, especially in humans or animals, without reference to mental states.

Organizational Alignment

The process of ensuring that business strategies, operational activities, and organizational culture work in harmony towards achieving the set goals and objectives.

Nonprofit Organizations

Organizations that prioritize social, cultural, or environmental objectives over profit, reinvesting surplus revenues in their mission.

Transformational

Related to or involving major change in structure or character, often for the better.