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please calculate a,b, and c. thanks! a. Given the holding period returns shown in the popup window, compute the average returns and the standard deviations
please calculate a,b, and c. thanks!
a. Given the holding period returns shown in the popup window, compute the average returns and the standard deviations for the Zemin Corporation and for the market. b. If Zemin's beta is 156 and the risk-free rate is 8 percent, what would be an appropriate required return for an investor owning Zemin? (Note: Because the returns of Zemin Corporation are based on monthly data, you will need to annualize the returns to make them compatible 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 return compare with the return you believe to be a fair return, given the firm's systematic risk? Data Table n N MONTH ZEMIN CORP. MARKET 1 5% 4% 2 2% 1% 3 1% 1% 4 -2% - 3% 5 5% 2% 6 1% 3% (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) Step by Step Solution
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