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answer a-c, please. P8-11 (similar to) Question Help (CAPM and expected returns) a. Given the following holding-period returns, compute the average returns and the standard
answer a-c, please.
P8-11 (similar to) Question Help (CAPM and expected returns) a. Given the following holding-period returns, compute the average returns and the standard deviations for the Zemin Corporation and for the market b. If Zemin's beta is 1.92 and the risk-free 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-ree rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average monthly returms by 12) C. How does Zemin's historical average return compare with the return you believe you should expect based on the capital asset pricing model and the firm's systematic risk? a. Given the holding-period returns shown in the table the average monthly return for the Zemin Corporation is %. Round to two decimal places. Data Table 5% 3% Print Done Enter your answer in the answer box and then click CheckStep by Step Solution
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