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Question 1 (answer all parts) (Total 30 marks) You have obtained the following share prices from Yahoo Finance. Company 1 is listed on the London
Question 1 (answer all parts) (Total 30 marks) You have obtained the following share prices from Yahoo Finance. Company 1 is listed on the London Stock Exchange. You want to estimate the beta value for Company 1. You run a regression of the share prices of Company 1 on FTSE100. You obtain the following regression output. Required (a) Identify 5 measurement errors or issues from the above regression approach. (10 marks) (b) Explain how you may modify the regression to improve the accuracy of the estimated beta. (20 marks)
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