What percentage of the total firm return risk is non-systematic? Again, present

Question

What percentage of the total firm return risk is non-systematic? Again, present your response in percent format rounded to the nearest basis point. Do not use the percent sign special character.

-if you could can you please explain what each regression statistic means (what they are).

Regression Statistics Multiple R 59% R Square 35% Adjusted R Square 34% Standard Error 3% Observations 60 ANOVA df SS MS F Significance F Regression 1                    0.021 0.021 31.346                  0.000 Residual 58                    0.038 0.001 Total 59                    0.059 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept                0.01                       0.00      1.71        0.09                  (0.00)               0.01 X Variable 1                0.68                       0.12      5.60        0.00                    0.44               0.92

Explanation / Answer

Simple linear regression is a statistical method that allows us to summarize and study relationships between two continuous (quantitative) variables.

The regression equation is a linear equation of the form: = b0 + b1x

In your output,

Rgression line is Y=0.01+0.68 * X

Whenever you use a regression equation, you should ask how well the equation fits the data. One way to assess fit is to check the coefficient of determination, Here R square = 35% or 0.35 Low Correlation between two variables.

Hope this will be helpful. Thanks and God Bless You:-)

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