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Unformatted text preview: Econ 483. Computer Exercise 1 Data are on the Catalyst Discussion Board (check myUW). Name: Based on Problems from Ernst R. Berndt (1991): The Practice of Econometrics: Classic and Contemporary , Chapter 2). This problem set deals with the Capital Asset Pricing Model (CAPM), and it is a relatively straightforward application of linear regression. You are given data on monthly stock returns (variable name: return ) for 15 companies in 7 industries for the period from January 1978 to December 1987. They are: Industry ncomp Company Oil 1 Mobil 2 Texaco Computers 3 IBM (International Business Machines) 4 DEC (Digital Equipment Corporation) 5 DataGen (Data General) Electric Utilities 6 ConEd (Consolidated Edison) 7 PSNH (Public Service of New Hampshire) Forest Products 8 Weyer (Weyerhauser) 9 Boise Airlines 10 PanAm (Pan American Airways) 11 Delta Banks 12 Contil (Continental Illinois) 13 Citcrp (Citicorp) Foods 14 Gerber 15 GenMil (General Mills) The dataset is capm.dta which can be found on the catalyst discussion board. The &le also contains informationThe dataset is capm....
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