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Adam Jones is examining the relationship between stock returns for ten different industries and interest rates over 20 years and has the following results: The

Adam Jones is examining the relationship between stock returns for ten different industries and interest rates over 20 years and has the following results: The mean of stock returns is 11.56% and the mean of interest rates is 7.85%. The variance of stock returns and interest rates is 0.000475 and .000293, respectively. The covariance between stock returns and interest rates is 0.000302. Exhibit 2 shows part of the ANOVA output of Jones' regression of stock returns onto interest rates.

Exhibit 2: Selected ANOVA Output

Standard Error of the Estimate 0.0373
Observations 85
ANOVA Sum of Squares
Regression 0.2187
Residual 0.1153
  1. Use the information in the paragraph to calculate the slope coefficient for the regression of stock returns onto interest rates.
  2. Use the information in the paragraph to calculate the intercept for the regression.
  3. Use the data in Exhibit 2 to calculate the coefficient of determination.
  4. Use the data in Exhibit 2 to calculate the F-statistic.

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