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(Relatod to Checkpoint 8.3) (CAPM and expected returns) a. Given the following holding period returns, , oompute the average returns and the standard deviations for

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(Relatod to Checkpoint 8.3) (CAPM and expected returns) a. Given the following holding period returns, , oompute the average returns and the standard deviations for the Sugita Corporation and for the market. b. If Sugita's beta is 1.68 and the risk-free rate is 7 percent, what would be an expected retum for an inveshoc owning Sugta? (Note: Because the preceding rohums are based on monthly data, yo will need to annualize the retums to make them comparable with the risk-free tate. For simplicily, you can convert from montily to yearly returns by multiplying the average monithly returns by 12 ) c. How does Sugita's historical average refurn compare with fhe return you should expect based on the Capitar Asset Pricing Model and the firm's systematic riak? a. Given the holding-period returns shown in the table, the averaon monthy return for the Sugita Corporation is 6. (Round to freee decind places) Data table

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