Download monthly adjusted close price for Johnson and Johnson (JNJ) from Feb 2012 to Feb 2022 (this should provide values for 121 months, which can be used to calculate returns for 120 months) (the Adjusted Close price is required for this. One of the quirks of data from Yahoo Finance is that when download monthly data is downloaded, it will display the date as the first day of the month, but the data is actually from the last day of the month. Dates can be changed in Excel to reflect the actual date for which the price is displayed.) Use index return on the S&P 500 (^GSPC on Yahoo finance) as the proxy for the market return. Assume risk-free rate to be 2.0% per year. ( Steps to get data: i) Go to Yahoo Finance and type in JNJ in the Quote Lookup box ( another way is the add the name of the company instead of the ticker), ii) Click on the Historical Data tab, iii) Change period from 1/1/ 2012 to Present, use Historical Prices for Show and change Frequency to Monthly, iv) Click on download data, v) Sort data by date once data is in Excel, vi) Keep the required months. Do the same for S&P 500)

1. Data download. (8)
2. Calculate returns for both JNJ and S&P 500 for 120 months ending in Feb 2022. (8)
3. What is the compound annual return over the 10 years for both JNJ and S&P 500? (use price from Feb 2022 and Feb 2012 to calculate this) (4)
4. What is the variance of returns of the S&P 500, returns of JNJ, and covariance between the returns of S&P500 and the returns of JNJ? Use 10 years of monthly returns ending with the returns of Feb 2022 for this. (use monthly returns from Mar 2012 to Feb 2022) (6)
5. What is the beta of JNJ with respect to the S&P 500? Use 10 years of monthly returns ending with the returns of Feb 2022 for this. (2)
6. Use the Capital Asset Pricing Model to calculate the cost of equity for Johnson and Johnson (JNJ). Use 10 years of monthly returns ending with the returns of Feb 2022 for this. (4)
7. Use cost of equity from part (e) and dividend growth rate from question 1(c) to calculate what should be the price of JNJ at the end of Feb 2022 using the Gordon growth model. (4)
8. Please use excel