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

question 109

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The expected return for Wyatt Oil is closest to:

• A)11.4%.
• B)11.8%.
• C)12.0%.
• D)12.6%.

---

Definitions:

Basking Reflected Glory

The phenomenon where individuals associate themselves with the successes of others, often to enhance their own self-esteem.

Anxiety-buffer

Psychological mechanisms or processes that help individuals cope with and reduce anxiety, often by reinforcing self-esteem or providing social support.

Sociometer Model

A theoretical model suggesting that self-esteem serves as an internal gauge of one's social acceptance or rejection.

Cognitive-dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.