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

question 28

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 expected return on a security with a beta of 0.8 is closest to:

• A)0.0%.
• B)3.2%.
• C)6.4%.
• D)7.2%.

---

Definitions:

Noncohesive Groups

Groups that lack unity, leading often to ineffective collaboration and weakened group identity.

Intermember Cooperation

The collaboration and mutual assistance among members within a group or team, essential for achieving collective goals.

Conformity Pressure

The influence exerted by a group that encourages individuals to change their attitudes, values, or behaviors to conform to group norms.

Group Cohesiveness

The extent to which members of a group feel connected and committed to one another, often leading to increased group performance.