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

question 8

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 0 is closest to:

• A)-4.0%.
• B)0.0%.
• C)3.2%.
• D)4.0%.

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Definitions:

Phase Angle

The angle or phase difference between two waveforms or signals, often measured in degrees.

Circuit Current

The flow of electric charge in a complete or partial electrical circuit.

Series RC

A circuit configuration where a resistor and a capacitor are connected in a linear sequence, affecting the overall impedance and phase angle.

Capacitive Reactances

The opposition to current flow presented by a capacitor, dependent on the frequency of the applied AC signal and the capacitor's value.