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Regression of annual stock returns on past earnings yield Based on the predictive regression results, is earnings yield a predictor for expected market return? Yes,
Regression of annual stock returns on past earnings yield Based on the predictive regression results, is earnings yield a predictor for expected market return? Yes, because beta is positive. No, because beta is less than 2. Yes, because the t-statistics on beta is significant. No, because the t-statistics on beta is not significant. Yes, because the R-squared is greater than 0.05
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