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What is the volatility? of a portfolio

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Reference no: EM132584725

Consider an economy with two types of? firms, S and I. S firms all move together. I firms move independently. For both types of firms there is a 30% probability that the firm will have a 21% return and a 70% probability that the firm will have a -8% return. What is the volatility? (standard deviation) of a portfolio that consists of an equal investment? in:

a. 35 firms of type? S?

b. 35 firms of type? I?

Reference no: EM132584725

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