a. Given the following​ holding-period returns, Month Zemin Corp. Market 1 8 ​% 3 ​% 2 4 3 3 0 1 4 −4 −3 5 6 3

[answerhappygod]

a.  Given the following​ holding-period returns,
Month
Zemin Corp.
Market
1
8
​%
3
​%
2
4
   3
3
0
   1
4
−4
−3
5
6
   3
6
2
   3
​, compute the average returns and the standard deviations for
the Zemin Corporation and for the market.b.  If​ Zemin's beta
is
1.28
and the​ risk-free 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​ risk-free rate.
For​ simplicity, you can convert from monthly to yearly
returns 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​ firm's systematic​ risk?