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

question 74

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 "Y" is closest to:

• A)0%.
• B)4%.
• C)10%.
• D)15%.

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Definitions:

Observable Behaviors

Actions or reactions of individuals, directly visible and measurable, used in the study of psychology and sociology.

Covert Behavior

Behavior that is not openly acknowledged or displayed, often hidden or secretive, contrasting with overt behavior that is readily observable.

Overt Behavior

Any observable action or response made by an individual that can be seen and measured by others.

Mental Process

Internal cognitive operations that include thinking, perceiving, remembering, and decision-making.