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

question 71

Multiple Choice

Use the following information to answer the question(s) below.
-Using the average historical excess returns for both Wyatt Oil and the Market portfolio,estimate Wyatt Oil's beta.When using this beta,the alpha for Wyatt Oil in 2007 is closest to:

• A)-0.5000%.
• B)-0.0250%.
• C)-0.0125%.
• D)+0.0250%.

---

Definitions:

Risky Assets

Assets that carry a significant possibility of loss along with the potential for higher rewards.

Money Market Mutual Funds

Investment funds that pool investors' money to purchase short-term, high-quality debt securities, offering liquidity and earning interest.

Check-Writing Privileges

The ability granted to an individual to write checks against an account, such as a money market account, that typically doesn't offer this feature.

Bank Checking Accounts

Banking services that allow individuals and businesses to deposit money and withdraw funds, typically through issuing checks or electronic transfers.