An analyst for an investment company wants to develop a regression model to predict the annual rate of return for a stock based on the price-earnings (PE) ratio of the stock and a measure of the stock's risk. The data found in below were collected for a random sample of stocks.

PE Ratio	Risk	Return
7.2	0.9	7.5
10.9	1.2	12.9
8.5	1	8.8
11	1.1	10.8
11.4	1.6	12
12	1.2	12.7
12.3	1.1	11.2
12.3	1.2	14
12.8	1.5	14.7
13.2	1.3	16.6

Let Y = Return, X₁ = PE Ratio, and X₂ = Risk. Obtain the regression results for the following regression model:

_i = b_0i + b₁X_1i + b₂X_2i

(A) Report the estimated regression equation you found. (Enter your answer using X₁ for X_1i and X₂ for X_2i. Round your numerical values to five decimal places.)

_i =(???)

(B) Interpret the value of R² for this model. (Express R² as a percent. Round your answer to two decimal places.)

The value of R² suggests that (???) % of variation in returns can be accounted for using this model.

(C) Obtain the regression results for the following regression model:

_i = b₀ + b₁X_1i + b₂X_2i + b₃X_3i + b₄X_4i

where

X_3i = X_1i²

and

X_4i = X_2i².

Report the estimated regression equation you found. (Enter your answer using X₁ for X_1i, X₂ for X_2i, X₃ forX_3i, and X₄ for X_4i. (Round your numerical values to five decimal places.)

_i =(???)

(D) Interpret the value of R₂ for this model. (Express R² as a percent. Round your answer to two decimal places.)

The value of R² suggests that (???) % of variation in returns can be accounted for using this model.