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

question 6

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 "Y" is closest to:

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

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Definitions:

Logical Fallacy

An error in reasoning that renders an argument invalid or undermines the logic of a discussion.

Analogy

A comparison between an unfamiliar idea, thing, or situation and something the audience already understands.

401(K) Retirement Plans

A tax-advantaged retirement savings plan offered by many employers in the United States, allowing employees to save a portion of their paycheck before taxes.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees over a specific period.