The following data represent the total compensation for 10 randomly selected chief executive ofcers (CEO) and the
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The following data represent the total compensation for 10 randomly selected chief executive ofï¬cers (CEO) and the company’s stock performance in 2009. Based on the analysis from Problem 31 in Section 4.1, what would be the predicted stock return for a company whose CEO made $15 million? What would be the predicted stock return for a company whose CEO made $25 million?
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Company Compensation Stock Kraft Foods Sara Lee Boeing Middleby Exelon Northern Trust Abbott Laboratories Archer Daniels Midland McDonald's Baxter International (millions of dollars) 26.35 12.48 19.44 13.37 12.21 11.89 26.21 14.95 17.57 14.36 Return(%) 5.91 30.39 31.72 79.76 8.40 2.69 4.53 10.80 4.01 11.76
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In Problem 31 Section 41 we computed the correlation coefficient r 0206 Since thi...View the full answer
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