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please answer last part, thank you! (CAPM and expected returns) a. Given the following holding-period returns, , compute the average returns and the standard deviations
please answer last part, thank you!
(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. 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 2.67%. (Round to two decimal places.) Data table The standard deviation for the Zemin Corporation is 3.36%. (Round to two decimal places.) Given the holding-period returns shown in the table, the average monthly return for the market is 1.17%. (Round to three decimal places.) The standard deviation for the market is 6. (Round to two decimal places.) b. If Zemin's beta is 1.27 and the risk-free rate is 7 percent, the expected return for an investor owning Zemin is 15.90%. (Round to two decimal places.) The average annual historical return f7%. (Round to two decimal places.)Step by Step Solution
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