I need help with this Finance question: 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?

Journal of Business Case Studies - November December 2010 Volume 6, Number 6 the S&P500 (Column 4) and the dependent variable is the return for Coca-Cola (Column 5). The retums are calculated by dividing the ending index or stock value by the beginning value and subtracting one. An alternative late the retum is to subtract the beginning value from the ending value and dividing by the beginning value. Both returns are adjusted for dividend and stock splits. The returns used are arithmetic returns. Table 1 contains the regression results for the regression between the return for the S&P500 and for Coca- Cola using Excel. The independent variable is the return for the S&P500 (x-axis) and the dependent variable is the return for Coca-Cola (y-axis). Both returns are adjusted for dividends and stock splits. The adjusted R' for the regression is 0.23 and the F-statistic is 18.65, both of which are statistically significant at the 0.0000 level. The regression coefficient is 0.7560 and has a t-statistic of 4.31 and is significant at the 0.0000 level. Table 1: Coca-Cola versus the S&P 500 Regression of Arithmetic Means Returns from 09/02/03 to 08/01/08 Regression Statistics Multiple R 0.493288 R Square 0.243333 Adjusted R Square 0.230287 Standard Error 3.723303 Observations 160 ANOVA S 1 Significance F 0.000062 Regression Residual Total 18.65 dr 1 58 59 MS 258.57 13.86 S 258.57 04.05 062.63 8 1 Coefficients 0.087056 0.765019 Intercept X Variable 1 Standard Error 0.485744 0.177137 Stat 0.179223 4.318793 0 P-value .858388 0.000062 Coca-Cola Characteristic Line (9/2/03 to 8/01/08) y=0.765x + 0.0871 R = 0.2433 Coca-Cola S&P 500 Figure 1: Characteristic Line - Coca-Cola 105