A research analyst is trying to cletermine whether a firm's price-eomings (PE) and peice-seles (PS) ratios can explain the firm's stock performance over the past year. A PE ratio is calculated as a firm's share price compared to the income or profit earned by the frim per share. Generaliy, a high. PE ratio suggests that investors are expecting higher eamings growth in the future compared to companies With a lower PE ratio. The PS ratio is calculated by dividing a firm's share price by the firm's revenue per share for the trailing 12 months, In short, investors can use the PS ratio to determine how much they are paying for a dollar of the firm's saies rather than a dollar of its earnings (PE ratio) In general, the lower the PS ratio, the more attractive the imvestment. The occompanying table shows a portion of the year-to-date returns (Retum in 96 ) and the PE and PS ratios for 30 firme A Click here fot the Excel Data File a-1. Estimate: Return =0+1PE+2 P5 +. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) As the PS retio increases by 1 unit, the predicted refurn of the fitm incresses by 3.37 is, holding PE constant. As the PS ratio increases by 1 unit, the predicted retum of the firm decreases by 4.39%, holding PE canstant. c. What is the predicted return for a firm with a PE ratio of to and a PS ratio of 2 ? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round final answer to 2 decimal ploses.) d. What is the standard error of the estimate? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct