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 the market portfolio is closest$$ to:

Question content area bottom

Part $1$

A$.$

$16\%.$

B$.$

$4\%.$

C$.$

$0\%.$

D$.$

$8\%.$