Which of the Following Assumptions Is Required for Obtaining Unbiased

question 7

Multiple Choice

Which of the following assumptions is required for obtaining unbiased fixed effect estimators?

• A)The errors are heteroskedastic.
• B)The errors are serially correlated.
• C)The explanatory variables are strictly exogenous.
• D)The unobserved effect is correlated with the explanatory variables.

Distinguish between different types of stock price predictions, including random walk theory and submartingale expectations.

Understand the principles and assumptions underlying technical analysis.

Analyze the effect of news and public information on stock prices and how this aligns with or contradicts market efficiency.

Learn the significance of earning surprises and their subsequent effect on stock prices.

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, affecting thoughts, feelings, and behaviors.

Intelligence

The ability to acquire and apply knowledge and skills, and adapt to new situations.

Talents

Describes individuals' natural aptitudes or skills in particular areas, such as art, sports, or intellectual achievements.

Fixed Mindset

A psychological theory describing individuals who believe their talents and abilities are fixed traits that cannot be developed.