Olport Consider an economy with two types of forms: Sand I.S forms all move together. I firms move independently. For both types of firms, there is a 60% probability that the firms will have a 15% return and a 40% probability that the forms will have a -10% return. The standard deviation (expressed in percentage of a portfolio that consists of an equal investment in 20 firms of type Sis 0.14 % The standard deviation (expressed in percentage) of a portfolio that consists of an equal investment in 20 forms of typelis Correct Answer:. - 12.25 X 0.15 %