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a. Given the following holding period retums, m.compute the average returns and the standard deviations for the Zomin Corporation and the market b. 1 Zemin's

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a. Given the following holding period retums, m.compute the average returns and the standard deviations for the Zomin Corporation and the market b. 1 Zemin's beta is 167 and the risk tree rate is 6 percent, what would be an expected return for an investor owning Zemin? (Note: Because the preceding returns are based on monthly data, you will need to annualize the returns to make them comparable with the risk free rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average monthly returns by 12) c. How does Zomin's historical average return compare with the return you believe you should expect based on the capital asset pricing model and the firm systematic risk? a. Given the holding period returns shown in the table, the average monthly return for the Zomin Corporation is % (Round to two decimal places) and the standard deviation for the Tornio Caracation and then compute is 6 percent, le with the risk- compare with 0 Data Table - X greturns are based on monthly da age monthly retums by 12.) 's systematic risk? the table, the av Market 3% 3 Month 1 2 3 4 5 6 Zemin Corp. 8% 2 - 1 -4 4 1 WOO 3 Print Done then click Check

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