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During an estimation period, the monthly empirical model applied to Macquarie Bank's stock produces the following estimates, which are believed to be stable over
During an estimation period, the monthly empirical model applied to Macquarie Bank's stock produces the following estimates, which are believed to be stable over time: MB = 0.011 +1.7M If during a one-month event window, the market index M falls by 3%, how much would we expect Macquarie Bank stock to change? If your answer is a %, enter as a decimal to 4 decimal places e.g., if your answer is 5.23%, enter 0.0523. If your answer is a whole number, enter to 2 decimal places e.g., if your answer is 11.4578, enter 11.46.
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