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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.


Definitions:

Projected Number

An estimate or forecast of a numerical value or quantity in the future, based on current data and trends.

Standard Suites

This term is not well-defined in a general context and could possibly pertain to a specific industry’s set of benchmarks, guidelines, or specifications. Without additional information, a precise definition cannot be provided, so per instruction, NO.

Objective Function

a mathematical function that represents the goal of an optimization problem, typically maximizing or minimizing some quantity.

Projected Number

An anticipated quantity or figure calculated for a future date, based on existing data and predictive analysis.

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