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:

Conscious Awareness

A state in which one is mentally alert and fully aware of their thoughts, feelings, and surroundings.

Feature Integration Theory

A proposal that perception of familiar stimuli occurs in two stages. The first (automatic) stage involves the perception of object features. The second (attentional) stage involves the integration and unification of those features.

Unified Objects

A concept referring to the integration of various elements into a coherent, singular entity in cognitive processing or computer science.

Serial Processing

A cognitive process in which the brain processes information sequentially, one item at a time.