Johnson & Johnson (J&J) was founded more than 120 years ago on the premise that doctors and nurses should use sterile products to treat people’s wounds. Since that time, J&J products have become staples in most people’s homes. Consider the CAPM where the J&J risk-adjusted stock return R − Rf is used as the response variable and the risk-adjusted market return RM− Rf is used as the explanatory variable. A portion of 60 months of data is shown in Table 15.4; the complete data can be found on the text website, labeled Johnson & Johnson.