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

question 21

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 "X" is closest to:

• A)0.
• B)0.80.
• C)1.00.
• D)1.25.

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Definitions:

Physical Inventory

The process of counting and verifying the actual quantities of merchandise or goods in stock, typically performed at the end of an accounting period.

Cost Flow Assumption

The method by which a company values and moves its costs (such as FIFO, LIFO) to determine the cost of goods sold and ending inventory valuation.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue; also known as net profit.

Inventory System

A method for keeping track of the quantity, location, and status of goods a company has in stock.