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

question 8

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 0 is closest to:

• A)-4.0%.
• B)0.0%.
• C)3.2%.
• D)4.0%.

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Definitions:

Ether Solvents

A class of organic compounds with an oxygen atom connected to two alkyl or aryl groups, used as solvents due to their low reactivity and good dissolving properties.

Grignard Reagents

Organomagnesium compounds that are used in reactions to form carbon-carbon bonds.

Organolithium Reagents

Strongly basic compounds used in organic synthesis, characterized by a direct bond between a carbon and a lithium atom.

Grignard Compound

A reagent in organic chemistry, typically R-Mg-X, used for forming carbon-carbon bonds.