​ a. Given the following​ holding-period returns, Month Sugita Corp. Market 1 2.0 ​% 1.2 ​% 2 −1.0 4.0 3 0.0 1.0

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​
a.  Given the following​ holding-period returns,
Month
Sugita Corp.
Market
1
2.0
​%
1.2
​%
2
−1.0
   4.0
3
0.0
   1.0
4
0.0
0.0
5
4.0
   7.0
6
4.0
   0.0
​, compute the average returns and the standard deviations for
the Sugita Corporation and for the market.
b.  If​ Sugita's beta is
1.25
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 return compare
with the return you should expect based on the Capital Asset
Pricing Model and the​ firm's systematic​ risk?