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

question 76

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 1.2 is closest to:

• A)4.8%
• B)8.0%
• C)8.8%
• D)9.6%

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Definitions:

Pay Surveys

Research conducted to gather and analyze salary data from various organizations to establish industry or regional benchmarks for compensation.

Pay Level

The average amount (including wages, salaries, and bonuses) the organization pays for a particular job.

Military Pay

The compensation, including salary, benefits, and allowances, provided to members of the armed forces, varying by rank, experience, and duty status.

Civilian Jobs

Employment positions not associated with the military or defense sectors, available to the general public.