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

question 45

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 risk-free rate is closest to:

• A)0%.
• B)4%.
• C)8%.
• D)16%.

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Definitions:

Decision Process

The sequence of cognitive operations or steps taken by individuals or groups in choosing among alternatives to reach a decision.

Alternative Solutions

Refers to various options or methods available for solving a problem or achieving an objective.

Crowdsourcing

Crowdsourcing involves obtaining ideas, services, or content by soliciting contributions from a large group of people, especially an online community.

Crowdsourcing

A sourcing model in which individuals or organizations obtain goods and services, including ideas, voting, or funding, from a large, relatively open, and often rapidly-evolving group of internet users.