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 23% probability that the firm will have a 8% retum and a 77% probability that the firm will have a -5% return. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in: a. 27 firms of type S? b.27 firms of type 1? a. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in 27 firms of type S? Standard deviation is %. (Round to two decimal places.) b. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in 27 firms of type 1? Standard deviation is %. (Round to two decimal places.) This Question: 5 pts 21 of 25 (9 complete) ilo 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 23% probability that the firm will have a 8% return and a 77% probability that the firm will have a -5% return. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in a. 27 firms of type S? b. 27 firms of type 1? a. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in 27 firms of type S? Standard deviation is % (Round to two decimal places.) b. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in 27 firms of type I? Standard deviation is % (Round to two decimal places.) Enter your answer in each of the answer boxes. - Type here to search O E