a. What is the volatility ( standard deviation) of a portfolio that consists of an equal investment in 24 firms of type S?

b. What is the volatility ( standard deviation) of a portfolio that consists of an equal investment in 24 firms of type I?

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 64% probability that the firm will have a 23% return and a 36% probability that the firm will have a - 19% return. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in: a. 16 firms of type S? b. 16 firms of type