Calculate the risk premium earned as part of total return

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Log onto Yahoo Finance and do the following: Look up Johnson and Johnson common stock (JNJ)

Calculate the total return if you had bought the stock one year ago and sold it at the current market price today.

Find the beta for the stock.

Calculate the risk premium earned as part of the total return.

How risky is this stock based on the beta?

Plot a chart for the maximum time for JNJ and then compare it to the S&P 500 on the same graph.

Were you appropriately rewarded for taking the risk attributable to JNJ?

Reference no: EM132499049

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