3. How do you interpret the beta for the stock and the mutual fund? (Hint: The beta is next to the coefficient.)

4. Which of the two regression estimates has the highest R-squared? Is this what you would have expected? Use the scatterplot to explain why

SUMMARY OUTPUT Regression Statistics Multiple R 0.999807944 R Square 0.999615925 Adjusted R Square 0.999609187 Standard Error 0.000585613 Observations 59 ANOVA df SS MS F Significance F Regression 1 0.050876195 0.050876195 148351.6916 4.7645E-99 Residual 57 1.95478E-05 3.42943E-07 Total 58 0.050895742 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 0.00177187 7.99626E-05 22.15873553 1.07663E-29 0.001611748 0.001931993 0.001611748 0.001931993 -0.007555786 1.001962139 0.002601388 385.1644993 4.7645E-99 0.99675295 1.007171328 0.99675295 1.007171328 RESIDUAL OUTPUT Observation Predicted -0.00634033265878447 Residuals 1 -0.061060232 0.000906683 2 0.041362716 -0.000247986 3 0.014335715 -0.000525167 4 0.021498871 0.000882 5 0.025988781 -0.000112039 6 -0.018148216 -0.000511024 7 0.004523977 0.001167483 8 0.008820571 0.00025099 9 0.052257165 -0.000429479 10 0.012787425 0.000693877 11 0.037763409 -0.000363939 12 0.019851377 -0.000685117 13 0.022558722 0.000777241 14 -0.013281911 -0.000137267 15 0.051314302 -0.000542286 16 -0.029620958 0.000600288 17 0.031563067 -0.000207381 18 0.04636328 -0.00048085 19 0.029834631 0.000543272 20 0.025364196 -7.86351E-05 21 -0.033897553 -0.000736312 22 0.044931754 0.00073711 23 0.008675889 -0.000347978 24 0.007968127 -0.000637869 25 0.022818366 0.00059959 26 0.020850898 -0.000209047 27 -0.013354248 -0.000466314 28 0.039476002 0.000458349 29 -0.013780757 -0.000256234 30 0.025002156 -0.00062717 31 0.026320199 0.000588796 32 -0.002449985 -0.000112495 33 -0.029346541 -0.000669604 34 0.056755389 0.000656579 35 -0.015675069 -0.000211327 36 0.01029271 -0.000777489 37 0.012275489 0.000567638 38 -0.019289379 -4.01731E-05 39 0.021527588 -0.000597739 40 -0.060965139 0.000604436 41 -0.024731195 -0.000203666 42 0.084909463 -0.000539244 43 0.002219282 0.000719295 44 -0.015934656 -9.14467E-05 45 -0.049255044 -0.000609738 46 -0.002581682 0.001011712 47 0.067683727 -4.62678E-05 48 0.004317921 -0.000595609 49 0.016934499 0.000772622 50 0.002500886 -8.38948E-05 51 0.037234451 -0.000638161 52 0.000333143 0.000858349 53 0.000376353 -0.00038089 54 -0.017892317 -0.000581368 55 0.035762957 0.001008819 56 0.019657658 -0.000245776 57 0.019273836 -0.000753144 58 0.038642234 0.000632197 59 0.00083083 -0.000257201