A regression of a stock's return (in percent) on an industry index's return (in percent) provides the following results:

| Coefficient | Standard Error |

|-------------|----------------|

| Intercept | 2.1 | 2.01 |

| Industry index | 1.9 | 0.31 |

| Degrees of Freedom | SS |

|--------------------|----------|

| Explained | 1 | 92.648 |

| Residual | 3 | 24.512 |

| Total | 4 | 117.160 |

Which of the following statements regarding the regression is correct?

I. The correlation coefficient between the X and Y variables is 0.889.

II. The industry index coefficient is significant at the 99% confidence interval.

III. If the return on the industry index is 4%, the stock's expected return is 10.3%.

IV. The variability of industry returns explains 21% of the variation of company returns.