The first five tabs show scatterplots and single$-$index regressions for these five socks based on data from the period October $2017$ to May $2022.$

Johnson and Johnson

Apple

Ford

Pitney Bowes

Moderna

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$1.$ Ignoring the issue of statistical significance, which stock had the best risk$-$adjusted performance over this historical period? Which performed worst on a risk$-$adjusted basis?

$2.$ Assuming that the CAPM holds, which stock would you expect to have the highest return in the future? Why?

$3.$ Compare the R$-$square and the beta for JNJ and Ford. Both R$-$square and beta are measures of systematic risk. Comment on what these two measures are telling you about these two companies. If I asked you which company had more systematic risk, what would your answer be and why?$]$

$4.$ Moderna is a very unusual case over this period, meaning that the results of the single$-$index model are unusual. What is unusual in those results? Can you come up with a real$-$world explanation for why we are getting those unusual results?