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

question 67

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 is closest to:

• A)-4.0%.
• B)3.2%.
• C)4.0%.
• D)8.0%.

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Definitions:

Physical Punishment

The use of physical force with the intention of causing a child to experience pain, but not injury, for purposes of correction or control.

Cross-Cultural Study

A research approach that compares cultural contexts to understand their influences on human behavior, practices, and beliefs, seeking to identify both universalities and cultural specificities.

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The process of gathering empirical data through the senses or instruments as a part of the scientific method.