and Suppose that we then estimated the following pair of regressions: [1] f = 5000 +...
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and Suppose that we then estimated the following pair of regressions: [1] f = 5000 + 50t + 0.1s, (1000) (32) (0.02) - - [2] Af = 50.5(f-1 f-1) + 0.70s 0.2As-1 + 0.1Aft-1 (4.3) (0.1) (0.2) (0.34) (0.7) where numbers in () are the standard errors of the estimated coefficients. f represents the FTSE100 index and s represents the S&P 500 index. The residuals from regression (2) do not exhibit serial correlation or heteroskedasticity. Given these results, what can be said about the relationship between the two indices? and Suppose that we then estimated the following pair of regressions: [1] f = 5000 + 50t + 0.1s, (1000) (32) (0.02) - - [2] Af = 50.5(f-1 f-1) + 0.70s 0.2As-1 + 0.1Aft-1 (4.3) (0.1) (0.2) (0.34) (0.7) where numbers in () are the standard errors of the estimated coefficients. f represents the FTSE100 index and s represents the S&P 500 index. The residuals from regression (2) do not exhibit serial correlation or heteroskedasticity. Given these results, what can be said about the relationship between the two indices?
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Based on the two regressions we can say the following about the relationship between the FTSE100 and ... View the full answer
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