Hi,

Could you help me on this problem attached below?

Thanks.

Project 1. Consider the multiple-response regression model of the form X = (X1,...,Xm)T =n+Bf+e, so that for each observation (X ,-, fi) satises Xi:(Xlj...,Xm)T:+Bf+E, i=1,...,n, (0.1) where p. is a mdimensional unknown mean vector, B 2 (b1, . . . , bd)T E 131de is the factor loading matrix, g E Rd is a vector of common factors to the ith observation and is independent of the noise 5%. An iconic example of model (0.1) is the factor pricing model in nancial economics, where X\