a) Given the following holding period returns, compute the average returns and the standard deviations for the Sugi Corp. and for the market.

Month	Sugi	Market
1	1.8%	1.5%
2	-0.5	1.0
3	2.0	0.0
4	-2.0	-2.0
5	5.0	4.0
6	5.0	3.0

b. Is Sugis beta and the risk-free rate is 8%, what would be an appropriate required return for an investor owning Sugi. (For simplicity you can concert from monthly to yearly returns by multiplying the average monthly returns you calculate in part a by 12).

c. How does Sugis historical return compare with the return you believe to be a fair return, given the firms systematic risk?

d. (i) What does beta risk mean; (ii) what is its relationship to the market risk, in other words, how do you interpret Sugis beta risk relative to the market? (iii) What is the difference between the beta and the standard deviation you calculated in part a.