QUESTION 1 (20 marks) In order to evaluate the effect of various firm-specific factors on the returns of a sample of firms, the following regression is constructed: ni = Bo + BISi + B2MB; + PIPE: + BABETA; + ui . . (1.1) where Ti = the percentage annual return of the stock Si = the size of firm i measured in terms of sales revenue MBi = the market to book ratio of the firm PEi = the price/earnings (P/E) ratio of the firm BETAi = the stock's CAPM beta coefficient The results based on the 200 firms selected randomly are as follows: Dependent Variable: r Variable Standardised Standard Coefficient Error Constant 0.080 0.064 S 0.801 0.147 MB 0.321 0.136 PE 0.164 0.420 BETA -0.084 0.120 R' = 0.645; Jarque-Bera y- statistics = 4.99 Residual Sum of Square = 5.246 (a) Compute the value of adjusted R?. (4 marks)