Question Nine: Estimating Beta Using Regression Quazar Research has developed a regression model that indicates beta is a function of: Business risk Coefficient of variation of operating income (A) Finance risk Debt-to-equity ratio (B) Maturity of firm Dividend payout ratio (C) Earnings growth Growth in EPS (D) Based on information from all companies in the S&P 500 in 2019, the following equation was calculated: Beta = 0.9832 + 0.08A - 0.126B + 0.15C + 0.034D All variables are calculated over the last 5 years using annual figures. Allison Company decided to use this model to calculate its beta since its shares do not trade publicly. The following data was collected: Operating Income Debt-to-Equity Ratio Payout Ratio EPS 2019 310,000 0.40 0.14 15.50 2018 350,000 0.39 0.13 17.50 2017 300,000 0.41 0.11 15.00 2016 125,000 0.36 0.05 6.25 2015 220,000 0.39 0.10 11.00 REQUIRED: 1. Estimate Allison Companys beta using the regression model developed by Quazar. 2. What are possible statistical concerns relating to this approach?\