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1) Explain the Ordinary Least Squares (OLS) methodology for estimating the coefficients of a simple regression model 2) Using appropriate notation, discuss Chow test in

1) Explain the Ordinary Least Squares (OLS) methodology for estimating the coefficients of a simple regression model

2) Using appropriate notation, discuss Chow test in comparison to Dummy variable approach for testing structural breaks.

3) Discuss the nature and importance of the stationarity concept in financial econometrics.

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