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You are a financial analyst following cryptocurrencies and your supervisor asks you to develop a multifactor model to predict crypto returns. Based on your research,
You are a financial analyst following cryptocurrencies and your supervisor asks you to develop a multifactor model to predict crypto returns. Based on your research, you believe the following three factors have strong predictive power of main cryptocurrencies returns: the percentage change in the CBOE volatility index VIX the S&P market index return rM and the inflation measure based on the percentage change in the consumer price index CPI a Please use the three factors to construct a threefactor model to predict crypto returns
You are a financial analyst following cryptocurrencies and your supervisor asks you to develop
a multifactor model to predict crypto returns. Based on your research, you believe the
following three factors have strong predictive power of main cryptocurrencies returns: the
percentage change in the CBOE volatility index VIX the S&P market index return
rM and the inflation measure based on the percentage change in the consumer price index
CPI
a Please use the three factors to construct a threefactor model to predict crypto returns
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