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

question 41

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 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:

Posttraumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a traumatic event, characterized by flashbacks, nightmares, and severe anxiety.

Schizophrenia

A mental disorder characterized by disturbances in thought, perception, and behavior, leading to a disconnect from reality.

Passive Aggression

A behavior pattern characterized by indirect expression of hostility through acts such as procrastination, stubbornness, and intentional inefficiency.

Suppression

The conscious deliberate effort to control and inhibit unacceptable thoughts, emotions, or impulses.