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%

---

Definitions:

Leadership

The act of guiding or influencing a group towards achieving its goals through direction, motivation, and implementing strategies.

Power

The ability or capacity to direct or influence the behavior of others or the course of events, widely studied in social and political sciences.

Referent Power

A form of influence that stems from the charismatic qualities or the respect and admiration one commands from others.

Expert

An individual possessing a high level of knowledge, skill, or expertise in a particular field or subject matter.