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(PLEASE SOLVE THIS QUESTION ACCURATELY) Your company completed an acquisition 5 years ago and your CEO believes it has had a materially impact. You are

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(PLEASE SOLVE THIS QUESTION ACCURATELY)

Your company completed an acquisition 5 years ago and your CEO believes it has had a materially impact. You are asked to work with a team of analysts to conduct a Chow test to see if that's the case. The team collects 5 years of monthly returns before the acquisition and the same for 5 years after the acquisition. They generate the following output using three regression of Stock returns against the Market: Pre-Acquisition Regression Results: SEE =0.17995R2=0.67333 Post-Acquisition Regression Results: SSR =4.18858R2=0.88424 Combined Regression Results: SST =10.44868R2=0.74776 Now it up to you to provide answers. a) Compute the Chow Test Results b) Are the results significant at the 5% significance level? Your company completed an acquisition 5 years ago and your CEO believes it has had a materially impact. You are asked to work with a team of analysts to conduct a Chow test to see if that's the case. The team collects 5 years of monthly returns before the acquisition and the same for 5 years after the acquisition. They generate the following output using three regression of Stock returns against the Market: Pre-Acquisition Regression Results: SEE =0.17995R2=0.67333 Post-Acquisition Regression Results: SSR =4.18858R2=0.88424 Combined Regression Results: SST =10.44868R2=0.74776 Now it up to you to provide answers. a) Compute the Chow Test Results b) Are the results significant at the 5% significance level

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