Predicted return for regression model

Variable: Coefficient: Constant -0.0069 S&P 500 0.3625 Spread 1.0264 So if question assumes monthly value for Spread = 1.5% and monthly value for S&P is -1.0%, the predicted monthly return for the equity index is: -0.0069% + (1.0264 x 1.5%) + (0.3625 x -1.0%) Why is the coefficient on the constant a %, but coefficient on S&P 500 and Spread are not?

You wouldn’t know that it’s intended as a percent unless they told you so. If they wrote -0.0069 as the constant and meant it to mean -0.0069%, they were being sloppy.

okay thanks

You’re welcome.