Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the results, at the 5% significance level, is the effect of Surprise on Return dependent on whether the FOMC meeting is scheduled or

Based on the results, at the 5% significance level, is the effect ofSurpriseonReturndependent on whether the FOMC meeting is scheduled or not?(0.5 mark)If so, please explain the impact ofScheduledin details.(1 mark)

image text in transcribed
b) We also create a variable which equals to Scheduled*Surprise, and then run a regression in which Y is Return, the first X variable is Surprise, and the second X variable is Scheduled*Surprise. The results are presented as below: _ Re : ression Model 4 surprise -5.96170*** (1.06541) Scheduledsurprise 3.88775* (1.61 175) Constant 0. 14796 (0.07837) Observations 171 R-squared 0.1661 Adjusted R-squared 0.1561 Residual Standard Error 0.9758 (df= 168) F-statistic 16.73 (df= 2; 168)*** *- 0.05, * . 0.01, ***- 0.001 Based on the results, at the 5% significance level, is the effect of Surprise on Return dependent on whether the FOMC meeting is scheduled or not? (Q mark) If so, please explain the impact of Scheduled in details [answer in less than 50 words]. (1 mark)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

Concise 6th Edition

324664559, 978-0324664553

More Books

Students also viewed these Finance questions