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:

Free Radical Chlorination

A chemical reaction involving the substitution of hydrogen atoms in alkanes with chlorine atoms through the action of free radicals, typically used in organic synthesis.

Bonds Formed

The creation of chemical bonds between two or more atoms leading to the formation of molecules or compounds.

Bond Dissociation Energies

The energy required to break a specific chemical bond in a molecule, indicating the bond's strength.

Carbon-bromine Bond

The covalent bond formed between a carbon atom and a bromine atom, often seen in organobromine compounds.