1. The company has chosen you to be analyst for a managed mutual fund... Investigate whether any significant relationship exists between a companies profitability (ROE) and its environmental, social and governance (ESG) ratings and management (CEO) turnover. A regression is performed with ROE (in percent) as the dependent variable and CEO tenure (in years) and ESG rating as the independent variables. Example of 40 large cap companies was used. The regression results are given below Coefficient t-Stat p-Value Intercept ESG Tenure 9.442 0.069 0.681 Standard Error 3.343 0.058 0.295 2.824 1.201 2.308 0.008 0.238 0.027 F Significance F 0.023 ANOVA Regression Residual Total MSS 120.205 28.892 4.161 SS 240.410 1069.000 1309.410 Multiple R R2 Adjusted R2 0.428 0.183 0.139 d) Which of the independent variables is significant at the 0.05 level? Explain. e) What is the interpretation of the R?? f) Someone in your firm recommends dividend growth as a third variable. Do you think that would be a reasonable addition? What other variable might be reasonable to add to the regression