The following regression model was estimated to forecast the value of the Malaysian ringgit (MYR):MYR Fao+a+INC+a₂INF+Uwhere MYR is the quarterly change in the ringgit, INF is the previous quarterly percentage change in the inflation differential, and INC is the predious quarterly percentage change in the income growth differential.Regression results indicato coeficientsao-0.004;a₁-0.6; and az -0.5. The most recent quarterly percentage change in the income differential is -1%, while the most recent quarterly percentagechange in the inflation differential is -7%. Using this information, the forecast for the percentage change in the ringgit is % (1 decimal place please; note % is already given, so if you find an answer of .055, youwill need to enter 5.5 for the correct answer because .055-5.5%)

We are given the following regression equation. In the formula above, a0 = intercept = 0.004a1 =…

Answered: Using this information, the forecast…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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In 2017 and 2018, Organigram (ticker symbol: OGI) earned returns of 18.18% and −5.34%, respectively. In 2019 and 2020, they earned returns of 20.57% and 8.73%, respectively. Given this information, Organigram’s variance of returns during 2017-2020 was a. .01658 b. .00631 c. .01842 d. .11753 e. .01381
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Using this information, the forecast for the percentage change in the ringgit 0555.5%