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(Risk Measurement and Rates of Return): to. Given the following holding period returns, determine the average returns and standard deviations for Corporation XYZ and for
(Risk Measurement and Rates of Return): to. Given the following holding period returns, determine the average returns and standard deviations for Corporation XYZ and for the market. XYZ Market Corporation Month 1 6% 4% 2 3% 2% 3 -1% 1% 4 -3% -2% 5 5% 2% 6 0% 2% b. If XYZ has a Beta of 1.54 and the risk-free rate is 8%, what will be an appropriate required return for XYZ? (Returns must be annualized, and multiplied by 12 to make them compatible with risk-free rates). c. How does XYZ's historical average return compare to what you think is fair, given the firm's systematic risk?
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