ou are interested in testing whether stock volatility, controlling for size and overall market returns, has an impact on returns. You conduct a regression on 78 observations, using monthly returns, specified as follows:

R_i = b₀ + b₁ Volatility_i + b₂ Size_i + b₃ R_market + error

Where Volatility is measured as standard deviation of returns in the previous month, Size is the natural log of total assets, in millions, and Rmarket is the contemporaneous market index return.

Your regression results are as follows:

	Coefficient	Standard error
Incercept	0.2	0.14
Volatility	0.61	0.11
Size	0.64	0.26
R market	0.42	0.29

The regression sum of squares is 0.19 and the residual sum of squares is 1.02.

What is the F statistic for testing whether the three independent variables are jointly statistically related to returns?

(Bonus question: is the regression statistically significant at the 5% level? Use the FDIST function to find the p-value.)

The answer is 4.59.

Please show using excel.