Question: Questions: 1. Does your linear regression data validate financial theory? Answer using 3 to 5 sentences. 2. What is the predicted return according to the

Questions: 1. Does your linear regression data validate financial theory? Answer

Questions:

1. Does your linear regression data validate financial theory? Answer using 3 to 5 sentences.

2. What is the predicted return according to the regression assuming a risk of 3? Show the linear regression.

3 Massachusetts Investors - Growth Stock, one of the funds in the dataset has a return of 18.6% and risk of 22.7%, Is this fund underperforming or outperforming according to the linear regression equation?

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