I need help answering the 3 questions below. Please see the attached case study to answer the
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I need help answering the 3 questions below. Please see the attached case study to answer the questions below:
1. Can you find an error in equation 1
2. Look at Figure 1, how well does the regression line predict the actual results? What does the R2 in the regression equation (table1) mean? Does this give you confidence in the calculated Beta or not?
3. The authors use very long-term ranges to estimate risk-free rate and market premium. What are the benefits and risks of this? Would you use a different range of numbers?
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/6666a515c54bd_9656666a515a1be8.jpg)
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![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/6666a516d8217_9666666a516b7307.jpg)
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