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

question 29

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 1.2 is closest to:

• A)4.8%.
• B)8.0%.
• C)8.8%.
• D)9.6%.

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Definitions:

Backup

A method for making copies of data or files to protect them from loss or damage.

Modified Wave

A scheduling strategy that combines patients with scheduled appointments and walk-ins to improve flow and efficiency in settings like clinics.

Exclusive Provider Organization

A managed care plan where services are covered only if you use doctors, specialists, or hospitals in the plan's network, except in an emergency.

Health Maintenance Organization

A type of health insurance plan that often requires members to access healthcare services from a specific network of providers.