A financial analyst uses the follow ing m odel to estim ate a firm's stock return: Return = β 0 + β 1 P/E + β 2P/S + ε , where P/E is a firm's price-to-earnings ratio and P/S is a firm's priceto-sales ratio. A portion o f the regression results is shown.

ANOVA df SS MS F Significance F Regression 2 918.746 459.373 2.817 0.0774 Residual 27 4402.786 163.066 Total 29 5321.532

a. C alculate th e stan dard e rro r o f th e e stim ate. G iven th a t th e m ean re tu rn fo r th is sam ple is 1.31% , calcu la te and in te rp re t

b. Calculate and interpret the coefficient o f determ ination.

c. Calculate the corresponding adjusted R2.