5. (5 pts) In the table below (From Chincarini and Kim), which would be the bottom 3 companies and which would be the top 3 in a quantile analysis of the Return on Assets factor? TABLE 4.5 Operating Profitability Factors for the Top 10 S&P 500 Companies Ticker Gross Profit Margin (GPM) Operating Profit Margin (OPM) Net Profit Margin (NPM) Return on Assets (ROA) Return on Total Capital (ROTC) Return on Common Equity (ROCE) 9.98 11.67 31.05 3.63 9.83 18.85 GE MSFT PFE XOM WMT INTC AIG CSCO IBM 27.68 85.72 87.27 21.87 47.65 24.07 72.62 24.99 76.46 41.49 27.68 47.58 37.89 15.12 47.65 6.61 43.63 24.99 34.52 15.77 4.64 17.87 11.17 13.30 3.45 12.87 17.35 2.72 13.28 9.67 18.95 16.38 5.98 23.92 18.21 20.76 14.91 13.02 16.38 5.90 22.65 14.77 15.63 14.71 10.84 12.76 17.26 3.45 18.72 11.40 18.95 8.54 12.77 27.21 Note: Data are for end of 2003. For the company names, see the note to Table 4.1. Numbers are in percent. 2 5. (5 pts) In the table below (From Chincarini and Kim), which would be the bottom 3 companies and which would be the top 3 in a quantile analysis of the Return on Assets factor? TABLE 4.5 Operating Profitability Factors for the Top 10 S&P 500 Companies Ticker Gross Profit Margin (GPM) Operating Profit Margin (OPM) Net Profit Margin (NPM) Return on Assets (ROA) Return on Total Capital (ROTC) Return on Common Equity (ROCE) 9.98 11.67 31.05 3.63 9.83 18.85 GE MSFT PFE XOM WMT INTC AIG CSCO IBM 27.68 85.72 87.27 21.87 47.65 24.07 72.62 24.99 76.46 41.49 27.68 47.58 37.89 15.12 47.65 6.61 43.63 24.99 34.52 15.77 4.64 17.87 11.17 13.30 3.45 12.87 17.35 2.72 13.28 9.67 18.95 16.38 5.98 23.92 18.21 20.76 14.91 13.02 16.38 5.90 22.65 14.77 15.63 14.71 10.84 12.76 17.26 3.45 18.72 11.40 18.95 8.54 12.77 27.21 Note: Data are for end of 2003. For the company names, see the note to Table 4.1. Numbers are in percent. 2