FILE A capital asset pricing model (CAPM) for Johnson &

Johnson (J&J) was discussed in Example 15.3. The model uses the risk-adjusted stock return R − Rf for J&J as the response variable and the risk-adjusted market return RM − Rf as the explanatory variable. The data for the model can be found on the text website, labeled Johnson &

Johnson. Since serial correlation may occur w ith tim e series data, it is prudent to inspect the behavior of the residuals.

Construct a scatterplot o f the residuals against tim e to comment on serial correlation.