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

question 30

Multiple Choice

Use the following information to answer the question(s) below.

Assume that the CAPM is a good description of stock price returns. The market expected return is 8% with 12% volatility and the risk-free rate is 3%. New information arrives that does not change any of these numbers, but it does change the expected returns of the following stocks:



-The expected alpha for Wyatt Oil is closest to:

• A)-3.00%.
• B)-1.00%.
• C)0.00%.
• D)3.00%.

---

Definitions:

Communication Barriers

Forces or events that can disrupt communication, including noise and distractions, competing messages, filters, and channel breakdowns.

Social Communication Model

A framework for understanding how information is exchanged and processed in social interactions and media.

Non-Voice Use

Utilization of technology or services that do not require spoken communication, such as texting or email.

Smartphones

Advanced mobile phones that combine the functionalities of a computer, including internet access and the ability to run software applications.