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 $26\%$ probability that the firm will have a $6\%$ return and a $74\%$ probability that the firm will have a negative $17\%$ return. What is the volatility$($standard deviation$)$ of a portfolio that consists of an equal investment$$ in:

a$.37$ firms of type$$ S$?$

b$.37$ firms of type$$ I?

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Part $1$

a$.$ What is the volatility$($standard deviation$)$ of a portfolio that consists of an equal investment in $37$ firms of type$$ S$?$

Standard deviation is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $2$

b$.$ What is the volatility$($standard deviation$)$ of a portfolio that consists of an equal investment in $37$ firms of type$$ I?

Standard deviation is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$probability that the firm will have a $-17\%$ return. What is the volatility $($standard deviation$)$ of a portfolio that consists of an equal investment in:

a$.37$ firms of type $S?$

b$.37$ firms of type I?

a$.$ What is the volatility $($standard deviation$)$ of a portfolio that consists of an equal investment in $37$ firms of type S$?$

Standard deviation is dots$\%.($Round to two decimal places.$)$

b$.$ What is the volatility $($standard deviation$)$ of a portfolio that consists of an equal investment in $37$ firms of type I?

Standard deviation is $\%.($Round to two decimal places.$)$