Again, consider the ten stock returns in m-excess-c10sp9003.txt. The stocks are from companies in three industrial sectors.

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Again, consider the ten stock returns in m-excess-c10sp9003.txt. The stocks are from companies in three industrial sectors.

ABT, LLY, MRK, and PFE are major drug companies, F and GM are automobile companies, and the rest are big oil companies. Analyze the excess returns using the BARRA industrial factor model. Plot the three-factor realizations and comment on the adequacy of the fitted model.

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