Use the Information for the Question(s)below

question 82

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 firms 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 S firms is closest to:

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

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Definitions:

Rorschach Inkblot

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex algorithms, or both.

Minnesota Multiphasic

A comprehensive psychological test known as the Minnesota Multiphasic Personality Inventory (MMPI), used to assess personality and psychopathology.

Ethnic Minorities

Groups within a community who have different national or cultural traditions from the main population, often with a history of less power or representation.

Reliability

The degree to which an assessment tool produces stable and consistent results across multiple administrations under similar conditions.