Interpret focusing on what the coefficients are telling us T

Interpret, focusing on what the coefficients are telling us.

Tesla

Coefficients

P-Value

Intercept

0.002033

0.04096

SMB

1.007774

2.5557

HML

-1.609558

2.16134

R(m)-RF

1.1871327

6.67046

General Motors

Coefficients

P-Value

Intercept

-0.0005056

0.27515

SMB

0.40053451

5.36791

HML

0.47620686

0.00013

R(m)-RF

1.24414616

4.75035

R-squared

Tesla

0.201299117

General Motors

0.451227513

Solution

you have this

Y = -0.0005056 + 0.40 SMB + 0.4762HML + 1.244 (Rm -RF)

so the coefficients are telling us that

for each SMB we will have 0.40 in the variable Y

for each HML we will have 0.4762 in the variable Y and so on