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:

Lower Incomes

This refers to individuals or families that earn less than the median income level, often characterized by limited financial resources.

Single Mothers

Female parents who are not living with a spouse or partner and are raising their children on their own.

Conservative Theory

A political or economic theory advocating for traditional values, minimal government intervention in the economy, and emphasizing individual responsibility and market freedom.

Welfare Dependency

A condition where individuals or families rely extensively on government assistance for long periods, rather than obtaining income through employment.