Your regression output should look like the following.

1. What is the formula for the small cap index characteristic line?

2. What is the small cap index beta?

3. What percentage of the variation in the small cap index returns is explained by the variation in the Market?

4. Does this regression have much explanatory power? Why or why not? (HINT: You need to cite 2 statistics to answer this question fully.)

Snal CapoTotal Maaket SUMMARY OUIPUT 0.92 0.85 Adfusted R Square84 1.10 51.00 MiipleR RSquare Standad Emor ANOVA 1.00 49.00 50.00 325.24 325.24270.84 0.00 5B.83 384.07 1.20 Total Coefficiert Standard Eort StPalve (0.035) 0.985 (0.23)0.82 16.46 0.06 0.00