In class, we learned that we can assess the impact of a macro indicator by running a
Question:
In class, we learned that we can assess the impact of a macro indicator by running a regression of the appropriate measure of stock market returns on the appropriate measure of the surprise contained in the announcement of the macro indicator
a. Using the posted spreadsheet, how exactly would you measure a surprise in nonfarm payrolls? Please state your answer by copying and pasting the corresponding Excel formula with cell references below.
b. Using the posted spreadsheet, how exactly would you measure the stock return associated with the nonfarm payroll announcement? Please state your answer by copying and pasting the corresponding Excel formula with cell references below.
Expert Answer:
ANSWER a To measure the surprise in nonfarm payrolls you can use the following Excel formula with ce... View the full answer
An Introduction to Statistical Methods and Data Analysis
ISBN: 978-1305269477
7th edition
Authors: R. Lyman Ott, Micheal T. Longnecker
