Why put a random error term in the market model? How would you estimate the market model

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Why put a random error term in the market model? How would you estimate the market model with regression analysis?

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Investment Valuation And Asset Pricing Models And Methods

ISBN: 9783031167836

1st Edition

Authors: James W. Kolari, Seppo Pynnönen

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Question Posted: Mar 03, 2024 02:00 AM

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Why put a random error term in the market model? How would you estimate the market model

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Reasons for Including a Random Error Term in the Market Model The market model which regresses an assets return against the return of the market portfolio includes a random error term often denoted by ...View the full answer

Investment Valuation And Asset Pricing Models And Methods

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