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:

Value of Each Share

The worth of a single share of stock in a company, determined by the market or through valuation techniques.

Residual Dividend Policy

A strategy where dividends are paid out from the residual or leftover equity after all necessary operating expenses and working capital needs are met.

Investment Needs

The financial goals or objectives that require the allocation of capital in securities or assets.

Dividends

Regular payments made by a corporation to its shareholders out of its profits or reserves.