Question: CAPM Question Standard Deviation wrong Given the following holding-period returns, compute the average returns and the standard deviations for the Sugita Corporation and for the

CAPM Question Standard Deviation wrong

CAPM Question Standard Deviation wrong Given the following holding-period returns, compute the

Given the following holding-period returns, compute the average returns and the standard deviations for the Sugita Corporation and for the market. b. If Sugita's beta is 0.83 and the risk-free rate is 7 percent, what would be an expected return for an investor owning Sugita? c. How does Sugita's historical average return compare with the return you should expect based on the Capital Asset Pricing Model and the firm's systematic risk? a. Given the holding-period returns shown in the table, the average monthly return for the Sugita Corporation is 2.20 %. The standard deviation for the Sugita Corporation is |6.3|%

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