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:

Faulty Parallelisms

Errors in the construction of sentences where parts that should be grammatically parallel or balanced are mismatched, leading to awkwardness or confusion.

Dependent Clause

A collection of words that includes a subject and a verb, yet fails to convey a full idea and is unable to function independently as a sentence.

Transitional Word

A word or phrase used to link sentences, paragraphs, or sections of a text, aiding in the smooth flow and coherence of the written material.

Scholarship

Financial support awarded to a student, based on academic achievement or other criteria, to help cover educational expenses.