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e) Using the extended regression model ret_ex t : = 0 + 1 mkt_ex t : + 2 ROE t : + 2 EG t
e) Using the extended regression model
ret_ext: = 0 + 1 mkt_ext: + 2 ROEt: + 2 EGt + ut
as an example, briefly explain any two of the conditions that must hold in order to make your
OLS estimators reliable estimators of the population coefficients. (Again, you only need to
explain two of the relevant condifions/assumptions, not all of them).
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