The bid-ask spread for stocks depends on the market liquidity for stocks. One measure of liquidity is

Question:

The bid-ask spread for stocks depends on the market liquidity for stocks. One measure of liquidity is a stock's trading volume. Below are the results of a regression analysis using the bid-ask spread at the end of 2002 for a sample of 1,819 NASDAQ-listed stocks as the dependent variable and the natural log of trading volume during December 2002 as the independent variable. Several items in the regression output have been intentionally omitted. Use the reported information to fill in the missing values.
Regression Statistics
Multiple R.......................X2
R-squared.......................X1
Standard error..................X3
Observations..................1819
MSS Significance F df ANOVA SS X5 Regression 14.246 X7 X9 45.893 60.139 X8 Residual X6 Total X4
Standard Error Lower 95% Upper 95% Coefficients t-Statistic p-Value Intercept Slope coefficient 0.018707 29.85540 0.5218
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Quantitative Investment Analysis

ISBN: 978-1119104223

3rd edition

Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle

Question Posted: