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Source 55 or 145 Number of. abs = 120 3:3, 116} = 26.39 Model 31.960236 3 213200953 Prob > F = 0.0000 Residual 111.311131 116 1.0161308"! Rsquored...

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What is the meaning of the coefficient on x3?

a) If the sales of the company increases by a thousand dollars, the excess return on shares in company A will be 0.003% lower on average, holding the excess return on a stock index and debt constant and that it is a significant variable.

b) If the sales of the company increases by a thousand dollars, the excess return on shares in company A will be 0.003% lower on average, holding the excess return on a stock index and debt constant and that it is not a significant variable.

c) If the sales of the company increases by a thousand dollars, the excess return on shares in company A will be 0.00003% lower on average, holding the excess return on a stock index and debt constant and that it is a significant variable.

d) If the sales of the company increases by a thousand dollars, the excess return on shares in company A will be 0.00003% lower on average, holding the excess return on a stock index and debt constant and that it is not a significant variable.

ScreenShot_20180802190406.png

Source 55 or 145 Number of. abs = 120
3:3, 116} = 26.39
Model 31.960236 3 213200953 Prob > F = 0.0000
Residual 111.311131 116 1.0161308”! R—squored = 0.4101
Adj lit-squared = 0.3949
Total 199.331467 119 1.6?925603 Root. use = 1.003
y Caef. Std. Err. 1: P>|t| [95% Cent. Interval]
x1 1.247139 .2024291 3.63 0.000 1.346253 2.143126
x2 —.0003021 .0009395 —0.32 0.143 —.0021635 .001553
3.3 -.022015 .0117946 -1.3'1f 0.064 -.0453153 .0013453
_oono 2.329397 1.333296 1.39 0.061 -.114326 5.1?4619
Where:
Y the excess return on shares in CompanyA
X1 the excess return on a stock index (market portfolio)
X2 the sales of Companyr A ($000)
X3 the debt of Company A ($000)

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