Consider an economy with two types of firms, S and I. S firms always move...
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Accounting
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
20%
probability that the firm will have a 20% return and a
80%
probability that the firm will have a
30%
return.
The standard deviation for the return on an individual firm is closest to:
A.
20%
B.
10%
C.
8%
D.
20%
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