Question: Goldcorp is a large gold mining company. The first regression output below is from regressing daily returns for Goldcorp over the last two years on the returns for the S&P 500 index. The second regression is from regressing daily Goldcorp returns on the returns for GLD, the gold bullion exchange traded fund (ETF). (10 points)

1. Is the relationship between returns on Goldcorp and returns on the S&P 500 statistically significant at the 1% level?
2. Which has a bigger influence on Goldcorp's returns, Gold or the S&P 500? Give the evidence for your answer.
3. If you believed that gold would rise over the next two years, but that the stock market would remain flat, which of these should you invest in — the S&P 500, the Gold ETF, or Goldcorp? Why?

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