A financial analyst would like to determine whether the return on Fidelitys Magellan mutual fund varies depending
Question:
a. Estimate y = β0 + β1d1 + β2d2 + β3d3 + where y is Magellans quarterly return, d1 is a dummy variable that equals 1 if quarter 1 and 0 otherwise, d2 is a dummy variable that equals 1 if quarter 2 and 0 otherwise, and d3 is a dummy variable that equals 1 if quarter 3 and 0 otherwise.
b. At the 10% significance level, can we conclude that Magellans stock return varies by season?Explain.
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Related Book For
Essentials Of Business Statistics Communicating With Numbers
ISBN: 9780078020544
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly
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