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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.

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 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return. What is the expected return? Please calculate the standard deviation

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