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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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The Answer of 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%.

Use the Information for the Question(s)below