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:

High Process Control

A situation where there is strict regulation and management of the procedures and methods utilized in production or in carrying out tasks.

Third-party Conflict

A type of conflict resolution involving an outside party who intervenes to help the conflicting parties reach a resolution.

Arbitration

A form of alternative dispute resolution where a neutral third party makes a binding decision to resolve a dispute between two or more entities.

Saving Face

The act of preserving one's reputation, dignity, or respect in a social context.