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5. (Find loading) The data here show the rate of return of a stock and the corresponding value of a factor F. In the model

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5. (Find loading) The data here show the rate of return of a stock and the corresponding value of a factor F. In the model ri= a +b x F +&i find the best values of a and b (which minimize the total squared error). A simple way is to optimize with a spreadsheet program. Rate .02 .34 12 .34 .67 .11 .33 .56 .34 -.28 Factor F 40 .80 .14 .66 90 .20 .18 47 .21. -.30 5. (Find loading) The data here show the rate of return of a stock and the corresponding value of a factor F. In the model ri= a +b x F +&i find the best values of a and b (which minimize the total squared error). A simple way is to optimize with a spreadsheet program. Rate .02 .34 12 .34 .67 .11 .33 .56 .34 -.28 Factor F 40 .80 .14 .66 90 .20 .18 47 .21. -.30

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