5.12. The following are the returns for Exxon (which later merged with Mobil) and the corresponding returns of the S&P 500 market index for each month in 1994.

Exxon S&P 500 Month Return (%) Return (%)
January 5.35% 3.35%
February 1.36 2.70 March 3.08 4.35 April 0.00 1.30 May 1.64 1.63 June 7.16 2.47 July 4.85 3.31 August 1.21 4.07 September 3.36 2.41 October 9.35 2.29 November 2.78 3.67 December 0.62 1.46 Using a spreadsheet, compute Exxon’s beta. Then apply the Bloomberg adjustment to derive the adjusted beta.