Question: quantative method in Finance You are given the following two equations: y, = b10 b122+ + Yu19-1 + 712771 +Eyt zz = b20 b2191 +

quantative method in Finance You are given the following two equations:

y, = b10 b122+ + Yu19-1 + 712771 +Eyt zz = b20

quantative method in Finance

You are given the following two equations: y, = b10 b122+ + Yu19-1 + 712771 +Eyt zz = b20 b2191 + Y2191 + Y22711 + Ezt 1. Assuming Ey and Ezt are pure innovations (or shocks) in yt and zt, respectively, is it possible to estimate these two equations with OLS? Explain = You are given the following two equations: y, = b10 b1224 + Y119-1 + 7127t-1 + Eyt zz = b20 b2194 + Y2191-1 + 722211 + Ezt 1. Assuming Ey and Ez are pure innovations (or shocks) in Yt and zt, respectively, is it possible to estimate these two equations with OLS? Explain You are given the following two equations: y, = b10 b122+ + Yu19-1 + 712771 +Eyt zz = b20 b2191 + Y2191 + Y22711 + Ezt 1. Assuming Ey and Ezt are pure innovations (or shocks) in yt and zt, respectively, is it possible to estimate these two equations with OLS? Explain = You are given the following two equations: y, = b10 b1224 + Y119-1 + 7127t-1 + Eyt zz = b20 b2194 + Y2191-1 + 722211 + Ezt 1. Assuming Ey and Ez are pure innovations (or shocks) in Yt and zt, respectively, is it possible to estimate these two equations with OLS? Explain

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