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For each of the following estimated equations of the form y = hat ( ) 0 + hat ( ) 1 x , interpret the
For each of the following estimated equations of the form hathat interpret the value of hat
a where is the rate of return of an asset in percentage points eg and is the rate of return of the market, also in percentage points. Determine the type of relationship as well as the interpretation of hat
b where is a firm's market value in million $ and is the number of competitors or firms in the market. Determine the type of relationship as well as the interpretation of hat
c where is the firm's stock price in $ and is the market return. Determine the type of relationship as well as the interpretation of hat Keep in mind that both variables are in logs
d where is the firm's stock price in $ and is the oil price per barrel in $ Determine the type of relationship as well as the interpretation of hat Keep in mind that one of the variables is in logs If this was a realistic example, what kind of firms and in which industry would experience this type of relationship with the oil price?
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