Question
Formula or process to calculate the following question: calculate the bid-ask spread for all stocks in the sample. Use a multiple regression model to identify
Formula or process to calculate the following question: calculate the bid-ask spread for all stocks in the sample. Use a multiple regression model to identify the variables that can explain the bid-ask spread. When running this regression model, your dependent variable should be the bid-ask spread and your independent variables should be: share price, market capitalisation, return volatility and turnover. In your word document report the regression output and identify which of these variables are shown to be related to the bid-ask spread at the 95% confidence level.
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