Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need the find part b and c can anyone help and please step by for b thank you. 6 of 10 (6 complete) ?

image text in transcribed

image text in transcribed

I need the find part b and c can anyone help and please step by for b thank you.

6 of 10 (6 complete) ? HW Score: 53.71%, 5.37 of 11 P8-11 (similar to) Question Help (CAPM and expected returns) Given the folowing holding period returns ? compute the average returns and the standard dev at ons for the Zemin C a ration min's beta is 1.32 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-free rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average monthly returns by 12.) c. How does Zemin's historical average r risk? eturn compare with the return you believe you should expect based on the capital asset pricing model and the firm's systematic Given the holding period returns shown in the table, the average monthly return for the Zemin Corporation is 67% Round to two decimal places The standard deviation for the Zemin Corporation is 3.14 %. Round to two decimal places) Given the holding period returns shown in the table the average monthly return for the market 2% Round to three decimal places The standard deviation for the market is 1 67 % dy (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. Final Check Clear All

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Frontier Markets Evidence From Middle East North Africa And International Comparative Studies

Authors: Panagiotis Andrikopoulos , Greg N. Gregoriou , Vasileios Kallinterakis

1st Edition

0128092009,0128094915

More Books

Students also viewed these Finance questions