Reply With Quotedo you still need the answer, or did you already submit your exam?
I'm not sure where to begin on this mess:
Book to Market (BMR) value and size S can explain variation in stock returns.
(A) State regression eq. using view of returns R.
(B) based on 34 observations, you got following (95% confident):
(C) Prof challenges regression as erroneous b/c BMR & S may be correlated. Name that error?
(D) Explain why challenge is not justified?
Coefficient St Error T-Stat
Intercept 14.1062 4.22 3.3427
BMR -12.1413 9.0406 -1.343
Size -0.00005502 0.0005977 -0.92047
R-sq: 0.06156
F-Stat: Insignificant
Last edited by sabunabu; 11-19-2009 at 03:44 PM.
do you still need the answer, or did you already submit your exam?
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