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.

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Definitions:

Monetary Policies

The procedures and actions of a central bank, currency board, or other regulatory committees that determine the size and rate of growth of the money supply, which in turn affects interest rates.

Fiscal Policies

Government policies regarding taxation and spending to influence a country's economy.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, bank regulation, and ensuring financial stability.

Federal Budget

An annual financial statement presenting the government's proposed revenues and spending for a fiscal year, outlining the allocation of funds across various government departments and programs.