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

question 45

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 risk-free rate is closest to:

• A)0%.
• B)4%.
• C)8%.
• D)16%.

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Definitions:

Mutual Agreement

Involves a shared or collective consensus or contract between two or more parties on a specific issue, arrangement, or course of action.

Working Relationship

A professional connection between individuals that aims to achieve business or work-related objectives.

Less Ambiguity

Situations or contexts characterized by clear, precise, and easily understandable information or directions, minimizing confusion or misunderstanding.

Internal Change Agents

Employees or individuals within an organization who are tasked with supporting, managing, or leading efforts to initiate and implement organizational changes.