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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
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 % probability that the firm will have a 20% return and a % probability that the firm will have a 30% return. What is the expected return for an individual firm?
A. 5%
B. 3%
C. -15%
D. -5%
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