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:

Psychosocial Development

A theory by Erik Erikson that emphasizes the impact of social experiences across the lifespan on individual development.

Sense Of Initiative

An individual’s ability to plan and execute tasks independently, often associated with confidence in taking actions.

Initiative Versus Guilt

A stage in Erik Erikson's psychosocial development theory, where children learn to initiate activities and interact with others or experience guilt for their actions and thoughts.

Pursue Interests

To pursue interests means to actively follow or engage in activities or subjects that one finds enjoyable or valuable.