Consider an economy with two types offirms, 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 7% return and a 70% probability that the firm will have a 14% return. What is the volatility(standard deviation) of a portfolio that consists of an equal investmentin:

a. What is the volatility(standard deviation) of a portfolio that consists of an equal investment in 30 firms of typeS?

Standard deviation is_____% Round to 2 decimal places

b. What is the volatility(standard deviation) of a portfolio that consists of an equal investment in 30 firms of typeI?

Standard deviation is_____% Round to 2 decimal places