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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:
Par Value
The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which does not necessarily reflect market value.
Cumulative
Relating to an amount that has been gathered or accumulated over time, often used in the context of dividends or other financial aggregates.
Preferred Stock
A type of equity security that has a higher claim on a company's assets and earnings than common stock, often paying fixed dividends.
Treasury Stock
Shares of a company's own stock that it has reacquired and held in its treasury.
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