Question: The attached spreadsheet fm3_chapter08.xls includes price data for the Dow-Jones 30 Industrials from July 1997 through July 2007. Isolating the data for Alcoa (AA) and

The attached spreadsheet fm3_chapter08.xls includes price data for the Dow-Jones 30 Industrials from July 1997 through July 2007. Isolating the data for Alcoa (AA)

and Johnson & Johnson (JNJ), confi rm the following statistics about the returns of these two stocks:

AA 0.68% 4 Sigma 5 Covariance 6 10.12% 1 A B DEF

AA 0.68% 4 Sigma 5 Covariance 6 10.12% 1 A B DEF ALCOA (AA) AND JOHNSON & JOHNSON (JNJ) Return statistics, 1997-2007 2 Monthly statistics 3 Average JNJ 0.72% AVERAGE(F16:F135) 5.84%

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