Linear relationship between returns and book to market value

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Reference no: EM131381544

A regression analysis was carried out of returns on stocks (Y) versus the ratio of book to market value (X). The resulting prediction equation is

Y = 1.21 + 3.1X(2.89)

where the number in parentheses is the standard error of the slope estimate. The sample size used is n = 18. Is there evidence of a linear relationship between returns and book to market value?

Reference no: EM131381544

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