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%.

---

Definitions:

Operational Excellence

Involves a firm’s focus on efficient operations and excellent supply chain management.

Market Share

The percentage of an industry's sales that a particular company secures over a specific time period.

Boston Consulting Group (BCG)

A global management consulting firm known for its expertise in business strategy and the development of the BCG matrix.

Portfolio Analysis

An assessment method used by businesses to evaluate the different elements of their product range to optimize strategic decisions.