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6 ' | 'K Search the web. Retake Financial Econometrics 2m 772m 8 El Insert PageLayout Formulas Data REVIEW VIEW Developer Help | DNavigationCancelled...

I'd like to know how to solve it please. This is a case of econometrics that has to be solve with Eviews.


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2018-05-13 (1).png

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A B C i D i E i F i G i H i I i J i K i L i M i N i 0 i P i Q i R i S i T i U i v i w i A Gnal: Run 2 linear regression: in order to explain v a Cast of Equity (cos) and than v a Cast of Capital (WAcc). The following steps need to be undertaken for each dependent variable underconsideration (First for COE, and second for WACC). Step 1: Men n'fy a maximum ofs explanatory factors (lie. 5 independent variables X) for each of the 2 dependent van'able: V.
:> identify a maximum of 5 factors to explain the evolution ofthe COE across industries,
and a maximum of 5 factors to explain the evolution of WACC across industries. iaiwimi”i°‘i”‘i“i“‘k i
1) Compute the correlation matrix ofthe data. 2) Explain how you select your factors: rationale, tests used and detailed tests' outputs/resuits/interpretations.
3) Draw the cloud plot of Y with each selected X. Step 2: Run the regression of Y on in- explanatory factor: X. 1) Run the linear regression. 2) Display the goodnessVofafit statistics or tests, and comment your results. 3) Display the robustness statistics ortests, and comment your results. 4) if the regression needs to be readjusted, run the new regression.
4a) Explain why the regression needsto be readjusted (e.g. insignificant factors, heteroscedasticity issues).
4b) Do again 1), 2) and 3) of step 2. Stag 3: interpret Fhe regressien': mluftr in the lens ofa corporate finance advia-or or a financial market adviror.
1) COE and WACC sensitivity to factors. 2) lndustries' vulnerability. 3) lstliere some missing information here? - ' ' suauesrmnsmhelnuou
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