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:

Operating Segment

A part of a company that participates in commercial operations, generating income and bearing costs, which encompasses transactions and financial activities with other sectors of the same company.

Separate Disclosures

Financial reporting that provides detailed information separately for each significant item.

Total Assets

The sum of all owned resources and investments of value that a company or individual has.

IFRS 8

An International Financial Reporting Standard that focuses on operating segments, requiring certain disclosures about an entity's products, services, and geographical areas.