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A. -0.0250% B. -0.0125% C. +0.0250% D. -0.5000% Year 2007 2008 2009 Risk-free Return 3.0% 1.5% 1.0% Market Return 6.0% - 38.5% 22.5% Wyatt Oil
A. -0.0250%
B. -0.0125%
C. +0.0250%
D. -0.5000%
Year 2007 2008 2009 Risk-free Return 3.0% 1.5% 1.0% Market Return 6.0% - 38.5% 22.5% Wyatt Oil Return 5.5% - 32.6% 19.6% Market Excess Return 3.0% 40% 21.5% Wyatt Oil Excess Return 2.5% - 34.1% 18.6% Beta 0.833 0.853 0.865 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: Year 2007 2008 2009 Risk-free Return 3.0% 1.5% 1.0% Market Return 6.0% - 38.5% 22.5% Wyatt Oil Return 5.5% - 32.6% 19.6% Market Excess Return 3.0% 40% 21.5% Wyatt Oil Excess Return 2.5% - 34.1% 18.6% Beta 0.833 0.853 0.865 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 toStep by Step Solution
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