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

question 84

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 beta for security "Z" is closest to:

• A)-1.00.
• B)-0.25.
• C)0.00.
• D)0.25.

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Definitions:

British Pounds

The currency of the United Kingdom, also known simply as the pound and symbolized by £.

Exchange Rate

The rate at which one currency can be swapped for another, impacting global trade and investment decisions.

U.S. Demand

The total desire or willingness to purchase goods and services in the United States, measured at a given price level and in a given time period.

Foreign Exchange

Foreign Exchange involves the trading of one currency for another, often conducted in the global foreign exchange market.