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

question 31

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 of 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%

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Definitions:

Equal Amounts

A term referring to identical quantities or volumes of a given item or resource, implying a state of equilibrium or balance.

Price of X

The amount of money required to purchase a specific good or service denoted as "X."

Lump Sum

A one-time payment for the total amount due, rather than breaking the payment into smaller installments.

Sales Tax

A tax paid to a governing body for the sales of certain goods and services, usually added to the price of the goods or service.