Question
Estimate a multiple linear regression relationship with the U.K. stock returns as the dependent variable, and U.K. Government Bond yield (Interest rate), U.S. Stock Returns,
Estimate a multiple linear regression relationship with the U.K. stock returns as the dependent variable, and U.K. Government Bond yield (Interest rate), U.S. Stock Returns, and Japan Stock Returns as the independent variables using the monthly data covering the sample period 1980-2019 (Finding the determinants of U.K. stock returns).
a.Show the estimated regression relationship
b.Conduct a t-test for statistical significance of the individual slope coefficients at the 1% level of significance. Provide the interpretation of the significant slope estimates.
c.Conduct a test for the overall significance of the regression equation at the 1% level of significance. (Test for the significance of the regression relationship as a whole)
d.Present the R-Square (Coefficient of Determination) and its interpretation.
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