Question: Consider 3 different least squares regressions A) IBM Return ~ Dell Return B) IBM Return ~ lagged(IBM Return) + Bitcoin Return + Apple Return C)

Consider 3 different least squares regressions

A) IBM Return ~ Dell Return B) IBM Return ~ lagged(IBM Return) + Bitcoin Return + Apple Return C) IBM Return ~ PCA from a correlation matrix of 30 stocks

Which regression uses exogenous variables? Give 2 reasons that justify your choices.

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