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The tables below contain the regression results with monthly returns on a large-cap mutual fund (the dependent variable) and monthly returns on a market index

The tables below contain the regression results with monthly returns on a large-cap mutual fund (the dependent variable) and monthly returns on a market index (the independent variable). The analysis is performed using 12 monthly observations. (4 points)

Regression Statistics:

Multiple R

0.776

R-squared

0.602

Standard Error

4.243

Observations

12

Regression Equation:

Coefficients

Standard Error

t-Statistic

P-value

Intercept

-0.287

1.314

-0.219

0.831

Slope coefficient

0.802

0.206

3.890

0.003

Question: What is the predicted return on the large-cap mutual fund for a market index return of 8%? Show your calculation.

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