Anwer a&b Consider a set of equity returns from four different markets across 12 different periods.Mkt_1 Mkt_20.0083 0.0427 -0.0179 -0.0039-0.0012 -0.0372 0.0090 -0.0026-0.0549 -0.0521 -0.0462 -0.05670.0275 -0.0626 0.0338 0.0140-0.0568 -0.0737 -0.0521 -0.0505-0.0370 -0.0160 -0.0234 -0.0266Mkt_3Mkt_4The data are available in the marketdata.txtDefine the forth variable as your response variable (Y). Define thefollowing three models:0.0575 0.0508 0.0603 0.05480.01030.0069 -0.0017 0.0038 -0.0010-0.0403 -0.0326 -0.0304 -0.02590.0054 0.0222 0.0142 0.01370.0303 0.0947 0.0295 0.0299-0.0138 0.0237 0.0147• Model 1 Y, Bo+Bixu+e;Model 2 Y; = Bo+ B2a2i+ EI• Model 3 Y, = Bo+ B1xi+ B2x21+ E,(a) What could you say about the significance of the parameters in the three models?(b) Are the data satisfying the normality assumption in each model?

It is given that the first three sets of equity returns from markets are the explanatory variable…

Answered: Consider a set of equity returns from…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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