a. Given the following holding-period returns, compute the average returns and the standard deviations for the...

 

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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 0.84 and the risk-free rate Data Table, 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? a. Given the holding-period returns shown in the table, the average monthly return for the Sugita Corporation is %. (Round to three decimal places.) Home A1 1 2 3 4 5 6 7 8 Paste 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Excel File Edit View Insert Format Tools Data Window C Formulas A Month Ready X AutoSave OFF Insert Draw Page Layout B 1 2.2% 2 -0.8% 3 -1.0% 4 1.0% 5 4.0% 6 4.0% Calibri B Sugita Corp. I U V fx C Market 1.0% 4.0% 3.0% 1.0% $7.0% 0.0% Month D Accessibility: Good to go V 11 E V Α Α΄ Αν APR 3 F Data Review = = = G H View I •) Help data-4_3_2023-1_43 AM Automate J V tv N K Tell me General ✓ % lo L .00 .00 →.0 M N Conditional Format Formatting as Table O O V P Cell Styles Q R Insert v Delete ✓ Format v O S Ơ WE V X T Sort & V Filter Microsoft Excel Comments !8uOr V Mon Apr 3 1:45 AM U Find & Select B V Share Analyze Data W + 100% 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 0.84 and the risk-free rate Data Table, 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? a. Given the holding-period returns shown in the table, the average monthly return for the Sugita Corporation is %. (Round to three decimal places.) Home A1 1 2 3 4 5 6 7 8 Paste 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Excel File Edit View Insert Format Tools Data Window C Formulas A Month Ready X AutoSave OFF Insert Draw Page Layout B 1 2.2% 2 -0.8% 3 -1.0% 4 1.0% 5 4.0% 6 4.0% Calibri B Sugita Corp. I U V fx C Market 1.0% 4.0% 3.0% 1.0% $7.0% 0.0% Month D Accessibility: Good to go V 11 E V Α Α΄ Αν APR 3 F Data Review = = = G H View I •) Help data-4_3_2023-1_43 AM Automate J V tv N K Tell me General ✓ % lo L .00 .00 →.0 M N Conditional Format Formatting as Table O O V P Cell Styles Q R Insert v Delete ✓ Format v O S Ơ WE V X T Sort & V Filter Microsoft Excel Comments !8uOr V Mon Apr 3 1:45 AM U Find & Select B V Share Analyze Data W + 100%

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