A financial analyst uses the following model to estimate a firms stock return: Return = 0

A financial analyst uses the following model to estimate a firm’s stock return: Return = β₀ + β₁P⁄E + β₂P/S + ε, where P/E is a firm’s price-to-earnings ratio and P/S is a firm’s price-to sales ratio. For a sample of 30 firms, she finds that SSE = 4,402.786 and SST = 5,321.532.

a. Calculate the standard error of the estimate.

b. Calculate and interpret the coefficient of determination.

c. Calculate the adjusted R2