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QUESTION 6 Suppose that the market portfolio is equally likely to increase by 24% or decrease by 8%. SecurityX goes up on average by 29%
QUESTION 6 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 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: -0.25 O 0.25 0.00
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