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? (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.)
	Given Data:
	Sugita's beta	1,18
	Risk free rate	4,00%
	Months in a year	12
	Market's expected return	15,00%
	Market risk premium	11,00%
	Expected return	16,98%
c.	How does Sugitas historical average return compare with the return you should expect based on the Capital Asset Pricing Model and the firms systematic risk?
	Sugita's historical average				22,60%
	Sugita's expected return using the CAPM and the firm's systematic risk				16,98%
4	In cell D24, by using cell references, calculate the markets annual expected return. (1 pt.)
5	In cell D25, by using cell references, calculate the market risk premium. (1 pt.)
6	In cell D26, by using cell references, calculate the expected annual return for an investor owning Sugita. (1 pt.)
7	In cell G30, by using cell references, calculate the Sugitas historical average annual return. (1 pt.)
8	In cell G31, by using a cell reference, determine the Sugitas expected annual return using the CAPM and the firms systematic risk. (1 pt.)