A Given the holding period returns shown here compute the
a. Given the holding- period returns shown here, compute the average returns and the standard deviations for the Zemin Corporation and for the market.
b. If Zemin’s beta is 1.54 and the risk- free rate is 4 percent, what would be an appropriate required return for an investor owning Zemin?
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?
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