Consider an economy with two types of firms, S and I. S firms always move...
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Finance
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 80% probability that the firm will have a 20% return and a 20% probability that the firm will have a -30% return. What is the expected return for an individual firm? A. 6% B. - 20% C. - 10% D. 10%
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