Question: Given the model below Return of Stock = f ( Dividend , Sales, Paid - up Capital ) Div = Dividend declared by the listed
Given the model below
Return of Stock f Dividend Sales, Paidup Capital
Div Dividend declared by the listed firms
Sales Net Turnover Annual
Capital Paidup Capital
Form TWO equations to conduct the Chow Test if one intends to study the effect of the RussiaUkraine war using daily trading data from Jan to Apr
Based on the model above, using a dummy variable for the RussiaUkraine war, please state the model again.
Draw two diagrams for and Explain the difference.
What are the benefits of using a dummy variable compared to the Chow Test?
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