## Table 0 ##
Ratings profile of VIE assets of the multi-seller conduits(a)
## Table 1 ##
(a) The ratings scale is presented on an S&P equivalent basis.
(b) Weighted average expected life for each asset type is based upon the remaining term of each conduit transaction’s committed liquidity plus either the expected weighted average life of the assets should the committed liquidity expire without renewal or the expected time to sell the underlying assets in the securitization market.
The assets held by the multi-seller conduits are structured so that if they were rated, the Firm believes the majority of them would receive an “A” rating or better by external rating agencies.
However, it is unusual for the assets held by the conduits to be explicitly rated by an external rating agency.
Instead, the Firm’s Credit Risk group assigns each asset purchase liquidity facility an internal risk-rating based upon its assessment of the probability of default for the transaction.
The ratings provided in the above table reflect the S&Pequivalent ratings of the internal rating grades assigned by the Firm.
The risk ratings are periodically reassessed as information becomes available.
As of December 31, 2008 and 2007, 90% and 93%, respectively, of the assets in the conduits were risk-rated “A” or better.
Commercial paper issued by the multi-seller conduits The weighted average life of commercial paper issued by the multiseller conduits at December 31, 2008 and 2007, was 27 days and 26 days, respectively, and the average yield on the commercial paper at December 31, 2008 and 2007, was 0.6% and 5.7%, respectively.
In the normal course of business, JPMorgan Chase trades and invests in commercial paper, including paper issued by the Firmadministered conduits.
The percentage of commercial paper purchased by the Firm across all Firm-administered conduits during the year ended December 31, 2008, ranged from less than 1% to approximately 20% on any given day.
The largest daily amount of commercial paper outstanding held by the Firm in any one multiseller conduit during the years ended December 31, 2008 and 2007, was approximately $2.7 billion, or 23%, for 2008, and $2.7 billion, or 16%, for 2007, of the conduit’s commercial paper outstanding.
On average, the Firm held approximately 3% of daily multi-seller conduit issued commercial paper outstanding during 2008.
Total multi-seller conduit issued commercial paper held by the Firm at December 31, 2008 and 2007, was $360 million and $131 million, respectively.
The Firm is not obligated under any agreement (contractual or noncontractual) to purchase the commercial paper issued by JPMorgan Chase-administered conduits.
to be reported as part of the basis of the item and continues to be amortized to earnings as a yield adjustment.
For qualifying cash flow hedges, the effective portion of the change in the fair value of the derivative is recorded in other comprehensive income (loss) and recognized in the Consolidated Statements of Income when the hedged cash flows affect earnings.
The ineffective portions of cash flow hedges are immediately recognized in earnings.
If the hedge relationship is terminated, then the change in fair value of the derivative recorded in accumulated other comprehensive income (loss) is recognized when the cash flows that were hedged occur, consistent with the original hedge strategy.
For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related derivative amounts recorded in accumulated other comprehensive income (loss) are immediately recognized in earnings.
For qualifying net investment hedges, changes in the fair value of the derivative or the revaluation of the foreign currency–denominated debt instrument are recorded in the translation adjustments account within accumulated other comprehensive income (loss).
JPMorgan Chase’s fair value hedges primarily include hedges of the interest rate risk inherent in fixed-rate long-term debt, warehouse loans, AFS securities, and the overall price of gold inventory.
All changes in the hedging derivative’s fair value are included in earnings consistent with the classification of the hedged item, primarily net interest income for long-term debt and AFS securities; other income for warehouse loans; and principal transactions revenue for gold inventory.
The Firm did not recognize any gains or losses during 2008, 2007 or 2006 on firm commitments that no longer qualified as fair value hedges.
JPMorgan Chase also enters into derivative contracts to hedge exposure to variability in cash flows from floating-rate financial instruments and forecasted transactions, primarily the rollover of shortterm assets and liabilities, and foreign currency–denominated revenue and expense.
All hedging derivative amounts affecting earnings are recognized consistent with the classification of the hedged item, primarily net interest income.
The Firm uses forward foreign exchange contracts and foreign currency–denominated debt instruments to protect the value of net investments in subsidiaries whose functional currency is not the U. S.  dollar.
The portion of the hedging derivative excluded from the assessment of hedge effectiveness (i. e. , forward points) is recorded in net interest income.
JPMorgan Chase does not seek to apply hedge accounting to all of the Firm’s economic hedges.
For example, the Firm does not apply hedge accounting to purchased credit default swaps used to manage the credit risk of loans and commitments because of the difficulties in qualifying such contracts as hedges under SFAS 133.
Similarly, the Firm does not apply hedge accounting to certain interest rate derivatives used as economic hedges.
The following table presents derivative instrument hedging-related activities for the periods indicated.
## Table 2 ##
(a) Includes ineffectiveness and the components of hedging instruments that have been excluded from the assessment of hedge effectiveness.
(b) During the second half of 2007, the Firm did not issue short-term fixed rate Canadian dollar denominated notes due to the weak credit market for Canadian short-term debt.
Over the next 12 months, it is expected that $348 million (after-tax) of net losses recorded in accumulated other comprehensive income (loss) at December 31, 2008, will be recognized in earnings.
The maximum length of time over which forecasted transactions are hedged is ten years, and such transactions primarily relate to core lending and borrowing activities.
Credit derivatives Credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third party issuer (the reference entity) and which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller).
Credit derivatives expose the protection purchaser to the creditworthiness of the protection seller, as the protection seller is required to make payments under the contract when the reference entity experiences a credit event, such as a bankruptcy, failure to pay its obligation, or a restructuring.
The seller of credit protection receives a premium for providing protection, but has the risk that the underlying instrument referenced in the contract will be subjected to a credit event.
The Firm is both a purchaser and seller of credit protection in the credit derivatives market and uses credit derivatives for two primary purposes.
First, in its capacity as a market-maker in the dealer/client business, the Firm actively risk manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of customers.
As a seller of protection, the Firm’s exposure to a given reference entity may be offset partially, or entirely, with a contract to purchase protection from another counterparty on the same or similar reference entity.
Second, the Firm uses credit derivatives in order to mitigate the Firm’s credit risk associated with the overall derivative receivables and traditional commercial credit lending exposures (loans and unfunded commitments) as well as to manage its exposure to residential and commercial mortgages.
See Note 4 on pages 141–155 of this Annual Report for further information on the Firm’s mortgage-related exposures.
In accomplishing the above, the Firm uses different types of credit derivatives.
Following is a summary of various types of credit derivatives.
Management’s discussion and analysis FIVE-YEAR STOCK PERFORMANCE The following table and graph compare the five-year cumulative total return for JPMorgan Chase & Co.  (“JPMorgan Chase” or the “Firm”) common stock with the cumulative return of the S&P 500 Stock Index and the S&P Financial Index.
The S&P 500 Index is a commonly referenced U. S.  equity benchmark consisting of leading companies from different economic sectors.
The S&P Financial Index is an index of 81 financial companies, all of which are within the S&P 500.
The Firm is a component of both industry indices.
The following table and graph assumes simultaneous investments of $100 on December 31, 2003, in JPMorgan Chase common stock and in each of the above S&P indices.
The comparison assumes that all dividends are reinvested.
## Table 3 ##
This section of the JPMorgan Chase’s Annual Report for the year ended December 31, 2008 (“Annual Report”) provides management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase.
See the Glossary of terms on pages 230–233 for definitions of terms used throughout this Annual Report.
The MD&A included in this Annual Report contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are based upon the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties.
These risks and uncertainties could cause JPMorgan Chase’s results to differ materially from those set forth in such forward-looking statements.
Certain of such risks and uncertainties are described herein (see Forward-looking statements on page 127 of this Annual Report) and in the JPMorgan Chase Annual Report on Form 10-K for the year ended December 31, 2008 (“2008 Form 10-K”), in Part I, Item 1A: Risk factors, to which reference is hereby made.
INTRODUCTION JPMorgan Chase & Co. , a financial holding company incorporated under Delaware law in 1968, is a leading global financial services firm and one of the largest banking institutions in the United States of America (“U.
S. ”), with $2.2 trillion in assets, $166.9 billion in stockholders’ equity and operations in more than 60 countries as of December 31, 2008.
The Firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing and asset management.
Under the J. P.  Morgan and Chase brands, the Firm serves millions of customers in the U. S.  and many of the world’s most prominent corporate, institutional and government clients.
JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N. A.
”), a national banking association with branches in 23 states in the U. S. ; and Chase Bank USA, National Association (“Chase Bank USA, N. A.
”), a national bank that is the Firm’s credit card issuing bank.
JPMorgan Chase’s principal nonbank subsidiary is J. P.  Morgan Securities Inc. , the Firm’s U. S.  investment banking firm.
JPMorgan Chase’s activities are organized, for management reporting purposes, into six business segments, as well as Corporate/Private Equity.
The Firm’s wholesale businesses comprise the Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management segments.
The Firm’s consumer businesses comprise the Retail Financial Services and Card Services segments.
A description of the Firm’s business segments, and the products and services they provide to their respective client bases, follows.
Investment Bank J. P.  Morgan is one of the world’s leading investment banks, with deep client relationships and broad product capabilities.
The Investment Bank’s clients are corporations, financial institutions, governments and institutional investors.
The Firm offers a full range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital raising in equity and debt markets, sophisticated risk management, market-making in cash securities and derivative instruments, prime brokerage and research.
The Investment Bank (“IB”) also selectively commits the Firm’s own capital to principal investing and trading activities.
Retail Financial Services Retail Financial Services (“RFS”), which includes the Retail Banking and Consumer Lending reporting segments, serves consumers and businesses through personal service at bank branches and through ATMs, online banking and telephone banking as well as through auto dealerships and school financial aid offices.
Customers can use more than 5,400 bank branches (third-largest nationally) and 14,500 ATMs (second-largest nationally) as well as online and mobile banking around the clock.
More than 21,400 branch salespeople assist

<table><tr><td></td><td colspan="6">Ratings profile of VIE assets of the multi-seller conduits<sup>(a)</sup></td><td rowspan="2">Commercial paper funded</td><td rowspan="2">Wt. avg. expected</td></tr><tr><td> December 31, 2008</td><td colspan="4">Investment-grade</td><td colspan="2">Noninvestment-grade</td></tr><tr><td>(in billions)</td><td>AAA to AAA-</td><td>AA+ to AA-</td><td>A+ to A-</td><td>BBB to BBB-</td><td colspan="2">BB+ and below</td><td>assets</td><td>life (years)<sup>(b)</sup></td></tr><tr><td> Asset types:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Credit card</td><td>$4.8</td><td>$3.9</td><td>$0.1</td><td>$0.1</td><td> $</td><td> —</td><td>$8.9</td><td> 1.5</td></tr><tr><td>Vehicle loans and leases</td><td>4.1</td><td>4.1</td><td>1.8</td><td>—</td><td></td><td> —</td><td>10.0</td><td> 2.5</td></tr><tr><td>Trade receivables</td><td>—</td><td>4.0</td><td>1.5</td><td>—</td><td></td><td> —</td><td>5.5</td><td> 1.0</td></tr><tr><td>Student loans</td><td>3.6</td><td>0.9</td><td>—</td><td>0.1</td><td></td><td> —</td><td>4.6</td><td> 1.8</td></tr><tr><td>Commercial</td><td>1.1</td><td>2.0</td><td>0.6</td><td>0.3</td><td></td><td> —</td><td>4.0</td><td> 2.7</td></tr><tr><td>Residential mortgage</td><td>—</td><td>0.6</td><td>—</td><td>0.1</td><td></td><td> —</td><td>0.7</td><td> 4.0</td></tr><tr><td>Capital commitments</td><td>—</td><td>3.6</td><td>0.3</td><td>—</td><td></td><td> —</td><td>3.9</td><td> 2.4</td></tr><tr><td>Rental car finance</td><td>—</td><td>—</td><td>0.4</td><td>—</td><td></td><td> —</td><td>0.4</td><td> 1.5</td></tr><tr><td>Equipment loans and leases</td><td>0.4</td><td>1.2</td><td>—</td><td>—</td><td></td><td> —</td><td>1.6</td><td> 2.2</td></tr><tr><td>Floorplan– vehicle</td><td>0.1</td><td>1.0</td><td>0.7</td><td>—</td><td></td><td> —</td><td>1.8</td><td> 1.1</td></tr><tr><td>Floorplan– other</td><td>—</td><td>—</td><td>—</td><td>—</td><td></td><td> —</td><td>—</td><td> —</td></tr><tr><td>Consumer</td><td>0.1</td><td>0.4</td><td>0.2</td><td>—</td><td></td><td> —</td><td>0.7</td><td> 1.6</td></tr><tr><td>Other</td><td>0.5</td><td>0.3</td><td>—</td><td>—</td><td></td><td> —</td><td>0.8</td><td> 3.7</td></tr><tr><td> Total</td><td>$14.7</td><td>$22.0</td><td>$5.6</td><td>$0.6</td><td> $</td><td> —</td><td>$42.9</td><td> 2.0</td></tr></table>
<table><tr><td></td><td colspan="5">Ratings profile of VIE assets of the multi-seller conduits<sup>(a)</sup></td><td rowspan="2">Commercial paper funded</td><td rowspan="2">Wt. avg. expected</td></tr><tr><td>December 31, 2007</td><td colspan="4">Investment-grade</td><td>Noninvestment-grade</td></tr><tr><td>(in billions)</td><td>AAA to AAA-</td><td>AA+ to AA-</td><td>A+ to A-</td><td>BBB to BBB-</td><td>BB+ and below</td><td>assets</td><td>life (years)<sup>(b)</sup></td></tr><tr><td> Asset types:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Credit card</td><td>$4.2</td><td>$9.4</td><td>$0.6</td><td>$—</td><td>$—</td><td>$14.2</td><td>1.5</td></tr><tr><td>Vehicle loans and leases</td><td>1.8</td><td>6.9</td><td>1.4</td><td>—</td><td>0.1</td><td>10.2</td><td>2.3</td></tr><tr><td>Trade receivables</td><td>—</td><td>4.7</td><td>1.7</td><td>0.2</td><td>—</td><td>6.6</td><td>1.3</td></tr><tr><td>Student loans</td><td>1.0</td><td>8.1</td><td>0.1</td><td>—</td><td>—</td><td>9.2</td><td>0.5</td></tr><tr><td>Commercial</td><td>0.5</td><td>3.5</td><td>0.7</td><td>0.1</td><td>—</td><td>4.8</td><td>2.8</td></tr><tr><td>Residential mortgage</td><td>1.5</td><td>0.8</td><td>0.8</td><td>—</td><td>—</td><td>3.1</td><td>1.5</td></tr><tr><td>Capital commitments</td><td>—</td><td>5.1</td><td>—</td><td>—</td><td>—</td><td>5.1</td><td>3.4</td></tr><tr><td>Rental car finance</td><td>—</td><td>0.7</td><td>—</td><td>—</td><td>—</td><td>0.7</td><td>1.1</td></tr><tr><td>Equipment loans and leases</td><td>0.4</td><td>1.9</td><td>—</td><td>0.2</td><td>—</td><td>2.5</td><td>2.2</td></tr><tr><td>Floorplan– vehicle</td><td>0.4</td><td>0.7</td><td>0.2</td><td>—</td><td>—</td><td>1.3</td><td>0.8</td></tr><tr><td>Floorplan– other</td><td>—</td><td>0.5</td><td>—</td><td>—</td><td>—</td><td>0.5</td><td>0.7</td></tr><tr><td>Consumer</td><td>—</td><td>1.4</td><td>0.2</td><td>—</td><td>0.1</td><td>1.7</td><td>1.8</td></tr><tr><td>Other</td><td>1.2</td><td>0.1</td><td>—</td><td>—</td><td>—</td><td>1.3</td><td>3.7</td></tr><tr><td> Total</td><td>$11.0</td><td>$43.8</td><td>$5.7</td><td>$0.5</td><td>$0.2</td><td>$61.2</td><td> 1.8</td></tr></table>
<table><tr><td>Year ended December 31, (in millions)</td><td> 2008</td><td>2007</td><td></td><td>2006</td></tr><tr><td>Fair value hedge ineffective netgains<sup>(a)</sup></td><td>$434</td><td>$111</td><td></td><td>$51</td></tr><tr><td>Cash flow hedge ineffective netgains<sup>(a)</sup></td><td>18</td><td>29</td><td></td><td>2</td></tr><tr><td>Cash flow hedging net gains onforecasted transactions that failed to occur</td><td>—</td><td>15</td><td><sup>(b)</sup></td><td>—</td></tr></table>
<table><tr><td>(in dollars)</td><td>2003</td><td>2004</td><td>2005</td><td>2006</td><td>2007</td><td>2008</td></tr><tr><td>JPMorgan Chase</td><td>$100.00</td><td>$109.92</td><td>$116.02</td><td>$145.36</td><td>$134.91</td><td>$100.54</td></tr><tr><td>S&P Financial Index</td><td>100.00</td><td>110.89</td><td>118.07</td><td>140.73</td><td>114.51</td><td>51.17</td></tr><tr><td>S&P500</td><td>100.00</td><td>110.88</td><td>116.33</td><td>134.70</td><td>142.10</td><td>89.53</td></tr></table>

Question: in the retail segment , what is the average number of salespeople in each branch?
Answer: 3.96296