$($Related to Checkpoint $8\mathrm{.}3)($CAPM and expected returns$)$

a$.$ Given the following holding$-$period returns,

$,$ compute the average returns and the standard deviations for the Sugita Corporation and for the market.

b$.$ If Sugita's beta is $0\mathrm{.}94$ and the risk$-$free rate is $9$ 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 $12.)$

c$.$ How does Sugita's historical average return compare with the return you should expect based on the Capital Asset Pricing Model and the firm's systematic risk?