Question: 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.

a. Given the holding- period returns shown here, compute the average returns and the standard deviations for the Zemin 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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