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The impact ofproduct differentiation on rate ofreturn on equity. To find out whether firms selling differentiated products (i.e., brand names) experience higher rates of return
The impact ofproduct differentiation on rate ofreturn 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 rms. y = 1.399 + 1.4903(1 + 0.2461(2 9.507x3 0.016;:4 39 = (1330) (0.056) (4.244) (0.017) Where y = the rate of return on equity, x1 (dummy variable) = 1 for rms with higher or moderate product differentiation, xZ-the market share, x3 the measure of rm size, 364 the industry growth size. Is there a statistical difference in the rate of return on equity:r capital between firms that do and do not productdifferentiate
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