Use the Following Information to Answer the Question(s)below

question 21

Multiple Choice

Use the following information to answer the question(s) below.
Suppose that the market portfolio is equally likely to increase by 24% or decrease by 8%.Security "X" goes up on average by 29% when the market goes up and goes down by 11% when the market goes down.Security "Y" goes down on average by 16% when the market goes up and goes up by 16% when the market goes down.Security "Z" goes up on average by 4% when the market goes up and goes up by 4% when the market goes down.
-The beta for security "X" is closest to:

• A)0.
• B)0.80.
• C)1.00.
• D)1.25.

---

Definitions:

Desensitization

A therapeutic technique aimed at reducing the emotional response to a feared object or situation, commonly used in treating phobias.

Psychoanalysis

A therapeutic approach founded by Freud, focusing on uncovering unconscious motivations and conflicts to understand and treat psychological disorders.

Gestalt Therapy

An approach to mental therapy that underscores self-responsibility and zeroes in on the patient's immediate life experiences, the rapport between patient and counselor, the influence of environmental and social settings on a person's existence, and the personal adjustments made based on their encompassing situation.

Family Therapy

A type of psychological counseling that helps family members improve communication and resolve conflicts.