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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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