a Given the following holding period returns, compute the average returns and the standard deviations for the Sugita Corporation and for the market b If Sugitas beta is 1 18 and the risk free rate is 4 percent, what would be an expected return for an investor owning Sugita c How does Sugitas histor...

A We are given values for both Sugita Corporations and the markets historical returns These are shown in the table below in columns B and E respective ...

a. Given the following holding-period returns, compute the average returns and the standard deviations for the Sugita

Question:

a. Given the following holding-period returns, compute the average returns and the standard deviations for the Sugita Corporation and for the market.

b. If Sugitaâ€™s beta is 1.18 and the risk-free rate is 4 percent, what would be an expected return for an investor owning Sugita?
c. How does Sugitaâ€™s historical average return compare with the return you should expect based on the Capital Asset Pricing Model and the firmâ€™s systematicrisk?

Capital Asset Pricing Model
The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks. The CAPM is a model for pricing an individual security or portfolio. For individual securities, we make use of the security market line (SML) and its... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...