1. Develop a regression model to predictprice-to-book-value ratio based on return on equity and growth.
2. Compute and interpret the adjusted r2 for each of the three models.
3. Which of these three models do you think is the best predictor ofprice-to-book-value ratio?

Price/Book Value Ratio Return on Equity Growth%

1.445 13.067 6.525

8.357 11.829 135.577

2.133 12.396 0.062

6.618 25.148 14.101

1.294 8.891 22.857

3.331 37.993 19.041

2.462 25.554 24.666

5.201 19.607 11.716

2.316 22.808 49.838

7.703 69.654 36.764

0.534 3.733 41.074

2.408 9.119 28.885

7.573 29.187 52.052

5.114 17.659 25.096

2.102 29.265 23.817

4.847 31.542 9.592

2.124 14.842 18.461

4.141 11.956 39.181

1.953 14.139 39.461

1.555 14.099 27.148

2.031 14.874 13.253

4.884 20.579 17.319

2.317 14.888 15.951

2.076 5.542 16.695

2.874 11.222 8.386

1.717 16.084 18.383

5.624 23.941 16.844

4.577 14.755 46.471

2.651 6.242 34.139

1.665 18.983 8.544

8.435 39.058 14.995

2.231 15.201 25.065

2.868 19.817 0.225

7.367 18.445 3.217

3.374 20.648 9.464

2.874 34.668 7.133

2.488 15.473 9.474

1.111 10.341 4.626

2.987 23.528 3.987

10.241 91.445 13.329

1.956 1.497 15.936

1.548 9.371 5.699

1.927 19.357 0.052

7.193 4.984 102.657

1.351 42.805 1.646

5.783 90.851 73.994

6.398 19.491 8.971

2.722 27.295 34.452

3.466 12.936 12.256

7.026 24.594 11.583

13.605 81.969 24.482

4.067 1.372 20.156

7.098 3.721 22.245

6.117 31.516 49.752

1.056 5.075 13.337

9.236 47.717 61.285

1.307 13.437 10.811

0.981 36.121 9.063

3.915 28.769 70.999

3.615 18.154 51.807

2.263 13.959 17.009

10.001 132.983 171.287

4.295 21.966 8.436

8.496 11.234 247.687

2.117 17.335 10.857

4.108 19.403 6.463

2.371 8.467 24.582

3.024 18.688 14.241

4.483 21.669 5.847

4.983 49.536 31.389

2.216 19.233 3.836