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

question 33

Multiple Choice

Use the following information to answer the question(s) below. All amounts are in millions.
-If the risk-free rate is 3% and the market risk premium is 5%,then the CAPM's predicted expected return for Wyatt Oil is closest to:

• A)7.0%.
• B)8.5%.
• C)9.0%.
• D)9.5%.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.