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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 risk-free rate is closest to:
Risk-Averse
Characteristic of preferring to avoid risk, leading to preference for safer, more certain outcomes over riskier ones.
Marginal Utility
The additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.
Expected Value
The anticipated value or return of a variable, taking into account all possible outcomes and their probabilities.
Income
Money received, especially on a regular basis, for work or through investments.
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