(Related to Checkpoint 8.3) (CAPM and expected returns) a. Given the following holding-period returns, m.compute the average returns and the standard deviations for the Sugita Corporation and for the market. b. If Sugita's beta is 1.93 and the risk-free rate is 7 percent, what would be an expected return for an investor owning Sugita? (Note: Because the preceding returns are based on monthly data, you will need to annualize the returns to make them comparable with the risk-free rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average monthly returns by 12.) c. How does Sugita's historical average retum compare with the return you should expect based on the Capital Asset Pricing Model and the firm's systematic risk? (Round to three Data Table a. Given the hold decimal places.) The standard de Given the holding decimal places) The standard del Month Sugita Corp. Market 1 20% 1.2% 2 -0.8 3.0 3 1.0 3.0 4 -1.0 - 1.0 6.0 70 6 6.0 1.0 (Click on the icon in order to copy its contents into a spreadshoot.) b. If Sugita's be decimal places.) The average and C. How does su the firm's system Round to two ping model and Sugita's historical Print Done Jematic risk