A security analyst is in the process of measuring the cost of capital of XYZ shares. He has collected the following monthly data for the period from 2000-2005 (60 months) 60 observations of the returns on the XYZ shares over the 60-month period (one each month) rM 60 observations of the returns on the S&P 500 index over the sample period (one each month) m = 60 observations of the risk-free rate (one each month) The CAPM equation is estimated through the following regression: The result of the regression is presented as follow SUMMARY OUTPUT Regression Statistics Multiple R Square Adjusted R Square Standard Error Observations 0.5471493 0.2993723 0.2872925 0.0534458 60 ANOVA MS F Significance F 0.0707912 0.070791 24.7829 6.07853E-06 Regression Residual Total 58 0.165674224 0.002856 59 0.236465423 Coefficients Standard Error tStat P-value Lower 95% Upper 95% Lower 95.0% U tr 95.096 Interce pt MRP 0.0101746 0.006900474 1.474474 0.14576-00036382280.023987372 0.003638228 0.023987372 11135286 0.223679004 4.978244 61E-06 0.665786441 1561270789 0.665786441 1.561270789 Where Intercept = ai , MRP = rMt_ rft , eit = error term a. Read and interpret the meaning of the above regression outcome . What is the value of adjusted R-square and what does the figure tell us about the overall fit of the regression model? Comment on the statistical significance of the Intercept and MRP Interpret the meaning of the coefficient of the variable MRP . b. -0.49%, Sample averages of the three variables are as followed: month. Calculate the expected excess return for XYZ share using the CAPM equation estimated above 0.44% per =