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-- I estimate a multiple linear regression model for portfolio using market size and value and adding as usual a constant (to make sure that

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-- I estimate a multiple linear regression model for portfolio using market size and value and adding as usual a constant (to make sure that E(errors)=0 as per the GM assumptions request ). Then I wish to identify monthly effects sol generate a dummy for each month of the year, from January to December included. EViews will FI Tin Select one: a. send out an error message saying: near singular matrix. This is happening because I fell into the dummy variable trap because the sum of all the dummy variables is at any point in time equal to 1. As a consquence theOLS estimator suffers of bias b. send out an error message saying: near singular matrix. This is happening because I fell into the dummy variable trap because the costant (c) multiplies the regressor 1 and the sum of all the dummy variable is at any point in time equal to 1. As a consequence the OLS estimator is inconsistent c. send out an error message saying: near singular matrix. This is happening because I fell into the dummy variable trap because the sum of all the dummy variables is at any point in time equal to 1. As a consequence the OLS estimator is not identified d. send out an error message saying: near singular matrix. This is happening because I fell into the dummy variable trap because the sum of all the dummy variables is at any point in time equal to 1. As a consquence the model is not identified and cannot be estimated e send out an error message saying near singular matrix. This is happening because I fell into the dummy variable trap because the costant (c) multiplies the regressor 1 and the sum of all the dummy variable is at any point in time equal to 1. As a consequence the model is not identified and no estimator can estimate the betas Next page

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