Table 1 Determinants of CSH and FCFS Monthly Returns CSH -0.2022 (-1.7934) Oil Price -0.2770 (-1.

1985) Consumer Credit -0.0003 (-0.2460) CPI -0.0092 (-0.4125) Unemployment Rate 0.0176 (1.6411) Consumer Confidence 0.0043 (1.0541) S&P 500 1.5691 (4.6192)** Gold Price -0.9060 (-3.2709)** Sample Size 34 R-squared 0.651 ** The coefficient is significant at the 1% level t-statistics are reported in parentheses Variable Intercept FCFS 0.0055 (0.0577) -0.3395 (-1.7268) -0.0003 (-0.2260) -0.0029 (-0.1539) -0.0027 (-0.2908) 0.0028 (0.8003) 1.1549 (3.9976)** -0.3985 (-1.6916) 34 0.457

The dependent variables in these regressions are the log monthly returns of CSH and FCFS. The S&P 500, oil price, and gold price have also been converted into log monthly returns. In this regression, we use the Federal Reserve Consumer Credit Index as an indicator of credit that consumers have access to in the US economy. For consumer confidence, we used the Conference Board Consumer Confidence Index. All of the economic data that were used in this regression are reported monthly and obtained from Bloomberg. The data is from August 2008 to September 2011. These regressions hope to capture the effect of various macroeconomic variables on the monthly returns of CSH and FCFS stocks. The only factors that are relevant to monthly returns of CSH stock are the monthly returns of the S&P 500 and gold. It is surprising to see that an increase in gold price decreases the monthly return of CSH stock. This result may arise from the short time series data that we have. For FCFS, the only significant factor is the monthly return of the S&P 500.

Table 2 CSH CAPM & 4-Factor Model Variable Alpha Beta S&P 500 Beta CRSP Index Size Growth Momentum CAPM 1 0.006 (0.961) 0.891 (5.732)** CAPM 2 0.006 (0.815) 0.965 (6.309)** 4-Factor 0.004 (0.620) 0.858 (5.260)** 0.856 (4.139)** 0.499 (2.215)* -0.192 (-1.402) 276 0.189

Sample Size 285 276 R-squared 0.104 0.127 * The coefficient is significant at the 5% level ** The coefficient is significant at the 1% level t-statistics are reported in parentheses

These regressions use monthly returns of CSH, S&P 500, and CRSP Index since the inception of CSH. The Size variable is the difference between the returns of small and large market capitalization companies in the CRSP Index. Hence, the coefficient for the Size variable is the exposure that the stock has to the excess return that small companies have over large ones. The Growth variable is the excess return that value companies have over growth companies. We define value companies as high book to market ratio and growth companies as those that have low book to market ratio. The coefficient for this variable is the exposure that the stock has to changes in this excess returns. The Momentum variable captures the idea that winning stocks tend to keep winning and losing stocks tend to keep losing. The variable is the return on the trading strategy that calibrates the portfolio every month such that we hold the winners and short the losers. Hence, this variable captures the long/short spread between winning stocks and losing stocks over time. CSHs beta to the S&P 500 is 0.891 and to the CRSP Index is 0.965. CSH has significant exposure to the excess return that small companies have over large ones and the excess return that value companies have over growth companies. The beta of the size factor is 0.856 and the beta to the growth factor is 0.499. CSH monthly returns do not have significant exposure to the momentum factor.

Table 3 FCFS CAPM & 4-Factor Model Variable Alpha Beta S&P 500 Beta CRSP Index Size Growth Momentum CAPM 1 0.015 (1.676) 0.603 (2.952)** CAPM 2 0.014 (1.5) 0.665 (3.3)** 4-Factor 0.01 (1.106) 0.568 (2.598)* 0.942 (3.41)** 0.503 (1.737) -0.043 (-0.246) 276 0.099

Sample Size 285 276 R-squared 0.037 0.048 * The coefficient is significant at the 5% level ** The coefficient is significant at the 1% level t-statistics are reported in parentheses

These regressions use monthly returns of FCFS, S&P 500, and CRSP Index since the inception of FCFS. The variables in this table are the same as those in the previous table. FCFSs beta to the S&P 500 is 0.603 and to the CRSP Index is 0.665. FCFS has significant exposure to the excess return that small companies have over large ones and the excess return that value companies have over growth companies. The beta of the size factor is 0.942. FCFS has no significant exposure to the growth or momentum factor.

Table 4 CSH & FCFS APT Model CSH FCFS 0.011 0.020 (1.638) (2.238)* Beta S&P 500 0.923 0.506 (6.368)** (2.455)* Gold -0.017 -0.085 (-0.120) (-0.449) Peso -0.063 -0.219 (-0.416) (-1.080) Sample Size 290 231 R-squared 0.137 0.042 * The coefficient is significant at the 5% level ** The coefficient is significant at the 1% level t-statistics are reported in parentheses This regression uses monthly returns on CSH, FCFS, S&P 500, and gold since the inception of CSH and FCFS. The Peso variable is the monthly USD to Peso exchange rate. In this model, the only significant exposure that CSH and FCFS have is to the risk premium of the S&P 500. The two stocks have no significant exposure to changes in gold prices and USD to Peso exchange rate. The fact that the alpha for FCFS is statistically significant can indicate that these three factors do not fully explain the monthly returns of the stock because some excess return remains. Variable Alpha