Question: In a regression of perceived long-term investment value (LTIV) on size (S), book to market (B/M), and management quality (MQ), the following coefficients (all statistically

In a regression of perceived long-term investment value (LTIV) on size (S), book to market (B/M), and management quality (MQ), the following coefficients (all statistically significant at the 5% level) were estimated:

LTIV = - 0.86+ 0.15log(S)- 0.11log(B/M)+ 0.85MQ

Critically discuss what can be learned from this regression (which appears in Shefrin, H., and M. Statman, 1995, "Making sense of beta, size, and book-to-market," Journal of Portfolio Management 21(2), 26-34). With reference to relevant literature, compare and contrast the results of this paper with other studies.

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