Name Three Variables That Chen, Roll, and Ross Used to Measure

question 26

Essay

Name three variables that Chen, Roll, and Ross used to measure the impact of macroeconomic factors on security returns.Briefly explain the reasoning behind their model.

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Definitions:

Gross Revenue

Gross Revenue is the total amount of money earned by a company from its business activities before any expenses are subtracted.

Confidence Intervals

Confidence intervals describe a range of possible values for a parameter based on sample data, indicating the reliability or precision of an estimate.

Prediction Intervals

A range of values within which a future observation is expected to fall, with a certain level of confidence.

Prediction Interval

A range of values within which a future observation is expected to fall, with a certain probability.