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The impact of product differentiation on rate of return on equity. To find out whether firms selling differentiated products (i.e., brand names) experience higher rates

The impact of product differentiation on rate of return on equity. To find out whether firms selling differentiated products (i.e., brand names) experience higher rates of return on their equity capital, hedge fund analyst obtained the following regression results based on a sample of 48 firms. = 1.399 + 1.4901 + 0.2462 9.5073 0.0164 = (1380) (0.056) (4.244) (0.017) Where y = the rate of return on equity, 1( ) = 1 for firms with higher or moderate product differentiation, 2-the market share, 3 - the measure of firm size, 4 - the industry growth size. Is there a statistical difference in the rate of return on equity capital between firms that do and do not product-differentiate?

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