Question: 3. (Average expected return and risk) Given the holding-period returns shown here, calculate the average returns and the standard deviations for the Kaifu Corporation and

 3. (Average expected return and risk) Given the holding-period returns shown
here, calculate the average returns and the standard deviations for the Kaifu

3. (Average expected return and risk) Given the holding-period returns shown here, calculate the average returns and the standard deviations for the Kaifu Corporation and for the market MARKET KAIFU CORP MONTH 2% 4 % 3 % 2 6 % 3 0 % 1 % -1 % 2 % 4 (Cick on the icon located on the top-right comer of the data table above in order to copy its contents into a spreadsheet) a. The average monthly return for Kaiu Corporation is %. (Round to two decimal places) % (Round to two decimal places.) The average monthly return for the market is % b. The standard deviation for Kaifu Corporation is (Round to two decimal places) The standard deviation for the market is % (Round to two decimal places) 2 (Capital asset pricing model) Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here, given that the risk-free rate is 8 percent and the expected retun for the market is 13 percent STOCK BETA 0.78 B 1.03 C 1.35 (Cick on he icon located on the top-right coner of the data lable above in order to copy its confents into a spreadsheel) a. Using the CAPM, the required rate of return for stock A is Round to two decimal places ) b. Using the CAPM, the required rate of retum for stock B is % (Round to two decimal places) c. Using the CAPM, the required rate of retun for stock C is % (Round to two decimal places)

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