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 Sugitas

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 1.18 and the risk-free rate is 4 percent, what would be an expected return for an investor owning Sugita?
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 systematicrisk?

Month Sugita Corp Market 1.8% 1.5% -2.0