Table 1 shows regressions of Swedish household portfolios beta for different brackets of the distribution of net
Fantastic news! We've Found the answer you've been seeking!
Question:
- Table 1 shows regressions of Swedish household portfolios’ beta for different brackets of the distribution of net wealth between 1999 and 2007 (standard errors are not reported). The table can be read as follows: if we distribute the households according to their net wealth from the less wealthy to the more wealthy ones, those, for example, that lie between 50% and 55% of the distribution (that is, they are more wealthy than the lower 50% but less wealthy than the top 45%) hold portfolios with average beta 0.748 (the first row in the table). How would you interpret the results? Could risk exposure be a factor explaining the wealth inequality? Explain your answer.
Table 1 Swedish household portfolios’ beta coefficients for different net wealth distribution percentiles
Percentiles | Beta coefficient |
---|---|
50–55 | 0.748 |
55–60 | 0.753 |
60–65 | 0.756 |
65–70 | 0.759 |
70–75 | 0.762 |
75–80 | 0.767 |
80–85 | 0.774 |
85–90 | 0.785 |
90–95 | 0.802 |
95–97.5 | 0.823 |
97–5-99 | 0.841 |
99–99.9 | 0.876 |
100 | 0.912 |
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: