Question 6 (5 points) Suppose you had data on stock price indices (X and Y) in two different countries. You are interested in causality issues and want to find out whether movements in stock prices in one country affect stock prices in another. How would you test for Granger causality? You would find correlation between two stock prices You would perform impulse response analysis using 10 -day forecasts of response to the shock of each variable on another. You would test for Granger causality using the coefficients of lags of variable X in the equation for X. Then do the same for Y. You would test for Granger causality using the coefficients of lags of variable X in equation for Y. Then test for lags of Y in equation for X. Question 7 (5 points) The results of the estimated CAPM model for the returns of the TRBCX fund (Large MacBook Pro 1)) @ # $ % & 2 3 4 5 6 7 8 W E R T Y U