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We analyze how the stock returns depends on the following variables. the firm's profits the variable name is profits the sector of activity of the
We analyze how the stock returns depends on the following variables. the firm's profits the variable name is profits the sector of activity of the firm: captured by 4 dummy variables: tech, banking, health, and manufacturing We run the following regression, return = 30 + B 1 profits + B 2 tech+B 3 health + B 4 manufacturing + u. What is the interpretation of B3? The impact that a firm in the sector health has on the return. The impact that a firm in the sector health has on the return compared to a firm in the sector banking, The impact that a firm in the sector banking has on the return compared to a firm in the sector health
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