We can test the market-timing and stock picking ability of a mutual fund manager by running the following regression model: Ri - rf = a + b * (Rm-Rf) + c * (Rm-Rh)2 where Ri is the fund's monthly net of expense ratio monthly returns. The regression output is the following: Coefficients t Stat 0.35% 2.25 b 0.74 1.13 0.52 2.83 a Given the above regression output, do you think this manager is able to time the market? Why? (15pts) We can test the market-timing and stock picking ability of a mutual fund manager by running the following regression model: Ri - rf = a + b * (Rm-Rf) + c * (Rm-Rh)2 where Ri is the fund's monthly net of expense ratio monthly returns. The regression output is the following: Coefficients t Stat 0.35% 2.25 b 0.74 1.13 0.52 2.83 a Given the above regression output, do you think this manager is able to time the market? Why? (15pts)