Question: 6. could you provide a non-finance example on regression? In particular, detail the process on how you conduct the regression and determine the significance of

6. could you provide a non-finance example on regression? In particular, detail the process on how you conduct the regression and determine the significance of alpha and beta.

11. According to your intution, which variable you think can probably be used to predict expected returns? Clearly state your intuition. Empirically, how do you test your intuition?

12. what happens to the optimal allocation when volatility and "risk premium" are cut in half. Risk premium is defines as the difference between the mean return on the risky asset and the risk-free rate. Explain your reasonsings.

12. 2what happens to the optimal allocation when volatility becomes higher than expected. Explain your reasonsings.

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Sure lets explore a nonfinance example of regression analysis using a classic example predicting students exam scores based on their study time 1 Data Collection Gather data on students study time and ... View full answer

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