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Use the following information to answer the question(s) below. Year Risk-free Return Market Return Wyatt Oil Return Market Excess Return Wyatt Oil Excess Return 2007

Use the following information to answer the question(s) below.

Year

Risk-free

Return

Market

Return

Wyatt Oil

Return

Market

Excess

Return

Wyatt Oil

Excess

Return

2007

3.0%

6.0%

5.5%

3.0%

2.5%

2008

1.5%

-38.5%

-32.6%

.40%

-34.1%

2009

1.0%

22.5%

19.6%

21.5%

18.6%

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:

-0.5000%

-0.0250%

-0.0125%

+0.0250%

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