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(Related to Checkpoint B.3) (CAPM and expected returns) a. Given the following holding-period returns. , compute the average retums and the standard deviations for the

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(Related to Checkpoint B.3) (CAPM and expected returns) a. Given the following holding-period returns. , compute the average retums and the standard deviations for the Sugita Corporation and for the markel. b. If Sugita's bela is 0.96 and the risk-free rate is 9 percent, what would be an expected return for an investor owning Sugita? (Note: Because the preceding refurne are based on monthly data, you will rieed to annualize the returns to make them comparable with the risk-free rate. For simplicily, you can convert fram monthiy to yoarly returns by mulkiplying the average monthly returns by 12.) c. How does Sugita's historical average retum compare with the return you should expect based on the Capital Asset Pticing Model and the firmis systematic rish? a. Given the holding-period roturns thown in the table, the average monthly return for the Sugita Corporation is . (Roind to three decirial places.) The standard deviation for the Sugita Corporation is __0. (Round to two decimal places.) Given the hoiding-period returns shown in the table, the average montily retum for the market is 8. (Round to three decimal plaovel The standard deviation for the market is 04. (Round to two docimal places.) b. If Sugita's beta is 0.06 and the risketree rate is 9 percont, the expected return for an investot owning Sugila is I Round to two docimal Rasicets ) The werage annual histonical retuin for Sugita is a. Given the following holding-period returns, ,compute the average returns and the standard deviations for the Sugita Coiporation and for tho muket b. If Sugita's beta is 0.96 and the risk-free rate is 9 percent, what would be an expected return for an investor owning Sugita? (Note Becarise the proceding reimen yearly returns by multiplying the average monthly relurns by 12 .) c. How does Sugita's historical average tetum compare with the return you shoukd expect based on the Capital Asset Pricing Model and the firms syetimatioc nak? The standard deviation for the market is % (Round to two decimal places.). b. If Sugita's beta is 0.96 and the risk-free rate is 9 percent, the expected rotum for an investor owring Sugita is (Round to two decinal plachit) The average annual historical retum for Sugita is 4. (Round to two decimal places.] (Select from the drop-down menu.) Sugita's historical average rotum is Data Table. Uning Sugita? (Note Becat Data table e. For simplicily, you can

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