5. (Find loading) The data here show the rate of return of a stock and the corresponding value of a factor F. In the model r₂ =a+bxF+ εi find the best values of a and b (which minimize the total squared error). A simple way is to optimize with a spreadsheet program. Rate .02 40 34 12 34 67 11 14 66 90 .20 90 .33 56 34 -28 .18 47 21 -.30

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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5. (Find loading) The data here show the rate of return of a stock and the corresponding
value of a factor F. In the model
ri = a+bxF+ ei
find the best values of a and b (which minimize the total squared error). A simple way is
to optimize with a spreadsheet program.
Rate
Factor F
.02 34 12
40 80 .14
56 34 -28
.33
20 .18 47 21 -.30
34 67 11
.66.90
Transcribed Image Text:5. (Find loading) The data here show the rate of return of a stock and the corresponding value of a factor F. In the model ri = a+bxF+ ei find the best values of a and b (which minimize the total squared error). A simple way is to optimize with a spreadsheet program. Rate Factor F .02 34 12 40 80 .14 56 34 -28 .33 20 .18 47 21 -.30 34 67 11 .66.90
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