Question

1 Approved Answer

Posted on Aug 29, 2024

Compensation (5 millions) Company Abbott Laboratories AES Allac Agilent Technologies AGL Resources Alcoa Alleghony Technologies Allergan Ameren American Electric Power American Express Ameriprise Financial AmerisourceBergen

Compensation (5 millions) Company Abbott Laboratories AES Allac Agilent Technologies AGL Resources Alcoa Alleghony Technologies Allergan Ameren American Electric Power American Express Ameriprise Financial AmerisourceBergen Analog Devices Apartment Investment and Management Apple Applied Materials AT&T Avery Dennison Baker Hughes Ball Bank of New York Mellon Baxter International BB&T Beam Bemis Berkshire Hathaway Boeing BorgWarner Bristol-Myers Squibb C.H. Robinson Worldwide CR. Bard Cabot Oil & Gas Capital One Financial CareFusion Carnival CenterPoint Energy Chubb Cigna Cincinnati Financial Coca-Cola Coca-Cola Enterprises Comerica Consina Return in 2012 (%) 19 19.0 7.7 -10.0 11.2 26.0 10.1 -2.0 4.3 -1.0 11.7 2.0 72 -35.0 19.4 5.0 5.8 -2.0 7.1 3.0 28 22.0 16.1 29.0 7.1 5.0 12.7 10.0 4.7 22.0 4.2 76.0 92 - 11.0 21 17.0 7.9 26.0 6.9 - 15.0 9.1 25.0 128 320 16 38.0 8.6 19.0 8 21.0 5.7 15.0 0.42 17.0 21.1 5.0 11.8 120 16 4.0 5 -7.0 8.1 15.0 7.9 31.0 22.6 37.0 10 -5.5 19.0 5.3 -4.0 11.6 11.0 12.8 27.0 2.1 34.0 21.6 7.0 10.2 26.0 762 20.0 115 6.3 10.2 72 26.0 20.0 0.0 37.0 15.0 78.0 17.0 + DATA Coca-Cola Enterprises Comerica Coming Covidien Deere Delphi Automotive DirecTV Discover Financial Services Dominion Resources Dover DTE Energy Duke Energy E. du Pont de Nemours Eastman Chemical Eaton eBay Ecolab Edison International EMC EQT Equifax F5 Networks Fastenal Fifth Third Bancorp First Horizon National FLIR Systems Fluor FMC Franklin Resources Gannett General Dynamics General Electric Genuine Parts Gilead Sciences Goodyear Tire & Rubber Harley-Davidson HCP Helmerich & Payne Hershey Hess Hewlett-Packard Honeywell International Humana Huntington Bancshares IBM International Flavors & Fragrances International Game Technology 11.5 10.3 17.1 12.2 17.9 9.9 8.2 11.6 7,8 8.3 12.7 5.9 18.5 297 8.8 8.7 16.6 8.7 11.7 5.2 3.8 8.9 5.7 4.7 9.3 7.6 123 5.5 18 20.5 4.9 15.3 13.4 10.3 11.8 5.1 8.5 10 15.4 16.3 8.4 6.7 15.4 82 6 76.0 2.0 15.0 15.0 1.0 2.0 77.0 28.0 68,0 24.0 9.0 17.0 9.0 42.0 47.0 9.0 22.0 24.0 - 10.0 18.0 37.0 32.0 41.0 7.0 21.0 7.0 79.0 -3.0 27.0 14.0 18.0 19.0 -6.0 -46.0 20.0 -20.0 19.0 6.0 29.0 -8.0 le Edit Insert Table Organize Format Arrange View Share Window Help CEO-Compensation2 Add tegory Insert -00 6.0 280 140 19,0 240 125% View Zoom + DATA International Game Technology Intuitive Surgical Joy Global Kello 99 Kimberly-Clark Kimco Realty L-3 Communications Holdings Lennar Life Technologies Lockheed Martin M&T Bank Marathon ON Marathon Petroleum McCormick & Company McGraw-Hill MeadWestvaco MetLife MetroPCS Communications Moody's Motorola Solutions Newfield Exploration Newmont Mining Noble Norfolk Southern Northem Trust NRG Energy NYSE Euronext O'Reilly Automotive Occidental Petroleum PACCAR Peabody Energy Pentair 5 6.6 5.7 10.6 3.3 113 13 103 238 3 13 12.4 6.1 9.1 45 132 7 6.8 103 53 9 9.5 9.7 72 7.6 12 3.8 18.0 1070 26.0 19.0 290 7.0 890 35.0 240 100 80 15.0 51.0 22.0 -29.0 -20.0 15.0 -120 29.0 27.0 25.0 12.0 -16.0 230 -19.0 50.0 -1.0 5.0 60.0 20.0 4.0 650 4.0 10.0 320 -30 30.0 60 30 4.0 30 28.5 71 9.5 14,7 3.7 12.6 People's United Financial PepsiCo PerkinElmer Pfizer PNC Financial Services Group PPG Industries Praxair Progressive Prologis Public Service Enterprise Group Qualcomm Reynolds American Rowan Ryder System Schlumberger 18.5 63 13.5 12 9.7 20.9 8.4 20.7 8.7 7.4 5.5 15 View Zoom Add Category Insert Table Text Shape Media Comme -4.0 3.0 29.0 5.5 15 6.7 11 4,6 7.9 7 6.7 10.7 28.9 8.6 84 9.8 4.2 8.1 10.3 11.2 13.1 11.3 74.0 19.0 59.0 -7.0 80 12.0 38.0 61.0 17.0 24.0 -8.0 58.0 DATA Ryder System Schlumberger Sempra Energy Sherwin-Williams Sigma-Aldrich Snap-on Spectra Energy St. Jude Medical Stanley Black & Decker Starbucks SunTrust Banks T. Rowe Price Group TE Connectivity TECO Energy Tenet Healthcare Teradata Tesoro Texas Instruments Textron Total System Services Tyco International U.S. Bancorp United Parcel Service United States Steel United Technologies Valero Energy Verizon Communications VF Viacom W.W. Grainger Walt Disney Wells Fargo Weyerhaeuser Whirlpool Whole Foods Market Wisconsin Energy XL Group 28.0 5 23.9 10.2 10.7 8.6 21.8 12.5 13.8 10.1 33.4 8.5 37.1 19.3 6.4 12.9 1.3 9.1 9.4 90.0 9.0 35.0 12.0 39.0 21.0 4.0 -9.0 15.0 65.0 13.0 21.0 41.0 10.0 73.0 27.0 52.0 119.0 50.0 9.0 29.0 QUESTION 9 The file here includes the total compensation (in Smillions) of CEOs of 169 large public companies and the investment return in 2012. Smillions The covariance between CEOs' total compensation and the investment return is The correlation coefficient between CEOs total compensation and the investment return is Hint: Use Excel functions to compute the values accurate to 4 decimal places. Compensation (5 millions) Company Abbott Laboratories AES Allac Agilent Technologies AGL Resources Alcoa Alleghony Technologies Allergan Ameren American Electric Power American Express Ameriprise Financial AmerisourceBergen Analog Devices Apartment Investment and Management Apple Applied Materials AT&T Avery Dennison Baker Hughes Ball Bank of New York Mellon Baxter International BB&T Beam Bemis Berkshire Hathaway Boeing BorgWarner Bristol-Myers Squibb C.H. Robinson Worldwide CR. Bard Cabot Oil & Gas Capital One Financial CareFusion Carnival CenterPoint Energy Chubb Cigna Cincinnati Financial Coca-Cola Coca-Cola Enterprises Comerica Consina Return in 2012 (%) 19 19.0 7.7 -10.0 11.2 26.0 10.1 -2.0 4.3 -1.0 11.7 2.0 72 -35.0 19.4 5.0 5.8 -2.0 7.1 3.0 28 22.0 16.1 29.0 7.1 5.0 12.7 10.0 4.7 22.0 4.2 76.0 92 - 11.0 21 17.0 7.9 26.0 6.9 - 15.0 9.1 25.0 128 320 16 38.0 8.6 19.0 8 21.0 5.7 15.0 0.42 17.0 21.1 5.0 11.8 120 16 4.0 5 -7.0 8.1 15.0 7.9 31.0 22.6 37.0 10 -5.5 19.0 5.3 -4.0 11.6 11.0 12.8 27.0 2.1 34.0 21.6 7.0 10.2 26.0 762 20.0 115 6.3 10.2 72 26.0 20.0 0.0 37.0 15.0 78.0 17.0 + DATA Coca-Cola Enterprises Comerica Coming Covidien Deere Delphi Automotive DirecTV Discover Financial Services Dominion Resources Dover DTE Energy Duke Energy E. du Pont de Nemours Eastman Chemical Eaton eBay Ecolab Edison International EMC EQT Equifax F5 Networks Fastenal Fifth Third Bancorp First Horizon National FLIR Systems Fluor FMC Franklin Resources Gannett General Dynamics General Electric Genuine Parts Gilead Sciences Goodyear Tire & Rubber Harley-Davidson HCP Helmerich & Payne Hershey Hess Hewlett-Packard Honeywell International Humana Huntington Bancshares IBM International Flavors & Fragrances International Game Technology 11.5 10.3 17.1 12.2 17.9 9.9 8.2 11.6 7,8 8.3 12.7 5.9 18.5 297 8.8 8.7 16.6 8.7 11.7 5.2 3.8 8.9 5.7 4.7 9.3 7.6 123 5.5 18 20.5 4.9 15.3 13.4 10.3 11.8 5.1 8.5 10 15.4 16.3 8.4 6.7 15.4 82 6 76.0 2.0 15.0 15.0 1.0 2.0 77.0 28.0 68,0 24.0 9.0 17.0 9.0 42.0 47.0 9.0 22.0 24.0 - 10.0 18.0 37.0 32.0 41.0 7.0 21.0 7.0 79.0 -3.0 27.0 14.0 18.0 19.0 -6.0 -46.0 20.0 -20.0 19.0 6.0 29.0 -8.0 le Edit Insert Table Organize Format Arrange View Share Window Help CEO-Compensation2 Add tegory Insert -00 6.0 280 140 19,0 240 125% View Zoom + DATA International Game Technology Intuitive Surgical Joy Global Kello 99 Kimberly-Clark Kimco Realty L-3 Communications Holdings Lennar Life Technologies Lockheed Martin M&T Bank Marathon ON Marathon Petroleum McCormick & Company McGraw-Hill MeadWestvaco MetLife MetroPCS Communications Moody's Motorola Solutions Newfield Exploration Newmont Mining Noble Norfolk Southern Northem Trust NRG Energy NYSE Euronext O'Reilly Automotive Occidental Petroleum PACCAR Peabody Energy Pentair 5 6.6 5.7 10.6 3.3 113 13 103 238 3 13 12.4 6.1 9.1 45 132 7 6.8 103 53 9 9.5 9.7 72 7.6 12 3.8 18.0 1070 26.0 19.0 290 7.0 890 35.0 240 100 80 15.0 51.0 22.0 -29.0 -20.0 15.0 -120 29.0 27.0 25.0 12.0 -16.0 230 -19.0 50.0 -1.0 5.0 60.0 20.0 4.0 650 4.0 10.0 320 -30 30.0 60 30 4.0 30 28.5 71 9.5 14,7 3.7 12.6 People's United Financial PepsiCo PerkinElmer Pfizer PNC Financial Services Group PPG Industries Praxair Progressive Prologis Public Service Enterprise Group Qualcomm Reynolds American Rowan Ryder System Schlumberger 18.5 63 13.5 12 9.7 20.9 8.4 20.7 8.7 7.4 5.5 15 View Zoom Add Category Insert Table Text Shape Media Comme -4.0 3.0 29.0 5.5 15 6.7 11 4,6 7.9 7 6.7 10.7 28.9 8.6 84 9.8 4.2 8.1 10.3 11.2 13.1 11.3 74.0 19.0 59.0 -7.0 80 12.0 38.0 61.0 17.0 24.0 -8.0 58.0 DATA Ryder System Schlumberger Sempra Energy Sherwin-Williams Sigma-Aldrich Snap-on Spectra Energy St. Jude Medical Stanley Black & Decker Starbucks SunTrust Banks T. Rowe Price Group TE Connectivity TECO Energy Tenet Healthcare Teradata Tesoro Texas Instruments Textron Total System Services Tyco International U.S. Bancorp United Parcel Service United States Steel United Technologies Valero Energy Verizon Communications VF Viacom W.W. Grainger Walt Disney Wells Fargo Weyerhaeuser Whirlpool Whole Foods Market Wisconsin Energy XL Group 28.0 5 23.9 10.2 10.7 8.6 21.8 12.5 13.8 10.1 33.4 8.5 37.1 19.3 6.4 12.9 1.3 9.1 9.4 90.0 9.0 35.0 12.0 39.0 21.0 4.0 -9.0 15.0 65.0 13.0 21.0 41.0 10.0 73.0 27.0 52.0 119.0 50.0 9.0 29.0 QUESTION 9 The file here includes the total compensation (in Smillions) of CEOs of 169 large public companies and the investment return in 2012. Smillions The covariance between CEOs' total compensation and the investment return is The correlation coefficient between CEOs total compensation and the investment return is Hint: Use Excel functions to compute the values accurate to 4 decimal places