A regression analysis was carried out of returns on stocks (Y) versus the ratio of book to

Question:

A regression analysis was carried out of returns on stocks (Y) versus the ratio of book to market value (X). The resulting prediction equation is

Y = 1.21 + 3.1X (2.89)

where the number in parentheses is the standard error of the slope estimate. The sample size used is n = 18. Is there evidence of a linear relationship between returns and book to market value?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...