(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.

MONTH		KAIFU CORP.		MARKET
1		4%		2%
2		7%		2%
3		0%		0%
4		1%		1%
(Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.)

a. The average monthly return for Kaifu Corporation is

%.

(Round to two decimal places.) The average monthly return for the market is

%.

(Round to two decimal places.) 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.)