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%.

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Definitions:

Enzymatic Activity

Refers to the catalytic action performed by enzymes, speeding up biochemical reactions within organisms without being consumed in the process.

RNA

Ribonucleic acid, a molecule essential for various biological roles such as coding, decoding, regulation, and expression of genes.

Cofactor

A non-protein chemical compound or metallic ion that is required for a protein's biological activity to happen, acting as an enzyme helper.