Question

please answer parts (e) through (i) , thanks!

(e) Predict the rate of return of Company 2 if the rate of return of Company 1 is 0.1 (10%). The rate of return of Company 2 will be Round to four decimall places as needed.) f If the actual rate of return for Company 2 was 13.1% when the rate of return of Company 1 was 10%, was the performance of Company 2 above or below average among all eare the returns of Company 1 were 10%? O Below average Above average (g) Interpret the slope. Chcose the correct anwer below. 。A. For each percentage point increase n the rats of return fr om any 1 the rate of return of Company 2 wil increase by about 0.05 percentage ponts, on average. B. For each percentage point increase in the rate of relurn for Company 1, the rate of retum of Company 2 will decrease by about 1.50 percentage points,on average. C. For each percentage point increase in the rate of relurn for Company 1, the rate of retu D. For each percentage point increase in the rate of return for Company 1, the rate of retum of Company 2 will increase by about 1.50 percentage points, on average. of Company 2 wil decrease by about 0.03 percentage points, on average. (h) Interpret the y-intercept. Choose the comect answer below. O A. O B. ⓔ C. 0 D. The y intercept indicates that the rale of returm for Company 1 will be 0.0338 when there is no change to Company 2. The y-intercept indicates that the rate at return for Company 2 will be 1.5039 when there is no change to Company 1 The y-intercept indicates that the rate of return for Company 1 will be 1.5039 when there is no change to Company 2. The y-intercept indicates that the rate of return for Company 2 will be 0.0336 when there is no change to Company 1

Answer 1