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

question 74

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 "Y" is closest to:

• A)0%.
• B)4%.
• C)10%.
• D)15%.

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Definitions:

Payables Turnover Rate

A financial ratio indicating how efficiently a company pays its suppliers, calculated by dividing total purchases by average accounts payable.

Accounts Payable Balance

The total amount of money that a company owes to its suppliers or creditors for items or services purchased on credit.

Sales

Revenue generated from goods or services sold by a company in a specific period.

COGS

Short for Cost of Goods Sold, it represents the direct costs attributable to the production of the goods sold by a company.