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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 risk-free rate is closest to:
Defense Spending
Spending by the government on military and defense activities, covering wages, machinery, research, and innovation.
Federal Government Spending
Expenditures by the national government on goods, services, and programs, including defense, education, and social security.
Foreign Aid
Financial or material assistance given by one country to another for relief, development projects, or economic stabilization.
Social Security Tax
A tax imposed on employers and employees alike to finance the Social Security program, offering benefits for retirement, disability, and survivors.
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