(CAPM and expected returns) a. Given the following holdingeperlod returns. E , compute the average returns and the standard deviations forthe Zemin Corporatlon and for the market b. lf Zemin's beta is 1.47 and the nskrfree rate is 7' percent, what would be an expected return for an investor owning Zemin? (Note. Because the preceding returns are based on monthly data, you Will need to annualize the returns to make them comparable with the riskrfree rate For simplicity. you can convert from monthly to yearly retums by multiplying the average monthly returns by 12 ) c. How does Zemin's historical average return compare with the return you believe you should expect based on the capital asset pricing model and the rm's systematic risk\" Data table a. Given the holding-period returns shown in the table, the average monthly return for the Zemin Corporation is "A: (Round to two decimal places.) The standard deviation for the Zemin Corporation ls % (Round to two decimal places ) 1 5% Given the holding-period returns shown in the table, the average monthly return for the market is %. (Round to three decimal places.) 3 i The standard deviation for the market is "/a. (Round to two deCImal places.) 2 12' b. lf Zemin's beta is 1.47 and the nskrfree rate is 7' percent, the expected return for an investor owning Zemin is %. (Round to two decimal places.) I . ,_ 6 m .4 2 n' M The average annual historical return for Zemin is \"la. (Round to two decimal places.) c. How does Zemin's historical average return compare with the return you believe you should expect based on the capital asset pricing model and the rm's systematic risk\" Zemin's historical average return is IV the return based on the capital asset pricing model and the rm's systematic risk