Maurice Tutor

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About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 409 Weeks Ago, 1 Day Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 02 Nov 2017 My Price 9.00

data set Growth

Using the data set Growth described in Empirical Exercise 4.4, excluding the data for Malta, run the following five regressions: Growth on (1) TradeShare and YearsSchool; (2) TradeShare and In(YearsSchool); (3) TradeShare, ln(YearsSchool), Rev_Coups, Assassinations and In(RGDP60); (4) Trade-Share,In(YearsSchool), Rev_Coups, Assassinations,In(RGDP60), and Trade-Share X In(YearsSchool); and (5) TradeShare, TradeShare2, TradeShare3, In(YearsSchool), Rev_Coups, Assassinations, and In(RGDP60). a. Construct a scatterplot of Growth on YearsSchool. Does the relation-ship look linear or nonlinear? Explain. Use the plot to explain why regression (2) fits better than regression (1).

b. In 1960, a country contemplated an education policy that would increase average years of schooling from 4 years to 6 years. Use regression (1) to predict the increase in Growth. Use regression (2) to predict the increase in Growth.

c. Test whether the coefficients on Assassinations and Rev_Coups are equal to zero using regression (3). d. Using regression (4), is there evidence that the effect of TradeShare on Growth depends on the level of education in the country?

e. Using regression (5), is there evidence of a nonlinear relationship between TradeShare and Growth?

f. In 1960, a country contemplated a trade policy that would increase the average value of TradeShare from 0.5 to 1. Use regression (3) to predict the increase in Growth. Use regression (5) to predict the increase in Growth.

Exercise 4.4

Read the box “The ‘Beta’ of a Stock” in Section 4.2.

a. Suppose that the value of β is greater than 1 for a particular stock. Show that the variance of (R – Rf) for this stock is greater than the variance of (Rm – Rt).

b. Suppose that the value β is less than 1 for a particular stock. Is it possible that variance of (R – Rf) for this stock is greater than the variance of (Rm – Rt). (Hint: Don’t forget the regression error.)

c. In a given year, the rate of return on 3-month Treasury bills is 3.5% and the rate of return on a large diversified portfolio of stock (the S & P 500) is 7.3%. For each company listed in the table in the box, use the estimated value of β to estimate the stock’s expected rate of return.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 02 Nov 2017 07:11 PM My Price 9.00

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