I want an expert who has knowledge both in stats and finance to answer this....

Question

I want an expert who has knowledge both in stats and finance to answer this.... As this question is related to financial Statistics.... Please answer if you are 100% sure #21

PrintE-mal BumOpen The following information relates to Questions 17-22 ary Hansen is& securthes snalyst for amutual fund LrOs eqpestly the initial retom for POs n small capital utan prowth sto Is The fu d regulaty misti un al public offerings dra) r the fand iu sabes tom ein are uodepriced and the price riues wirn open maket trading bepns The intial setars for PO cakculate Based on past research,he selects the following indeendent variables to puedict PO inatial eturns n allocated shan at the eda pre lim ed as the change im price on the fest day of tadeg drided by the oe price Hansen is developing &regression odel to gredit -1-10 wtere 10 in laghet rack Pre-effet price adustmeet(Offer priceInutial filing price) Intial filing price Fracton retained Fraction of sotal company laes cetained by nsiden Kanses colects a sample ot 1,725 secesd POs for his regression motel Regressice reaults appeat in Edbt 1, and ANOVA reusts appear E Variable Cermkien ) Standard Error ,Seatístic 004 0 0150 derer rark Pre offe price adnest04350 Oter nize Fractie reta 3.06 21 0 0009 0 0500 0 0202 00011 0 0260 192

Explanation / Answer

Hello Sir/ Mam

THE CORRECT ANSWER IS OPTION A : YES

Chang is correct because the presence of conditional heteroskedasticity results in consistent parameter estimates, but biased (up or down) standard errors, t-statistics, and F-statistics.

I hope this solves your doubt.

Feel free to comment if you still have any query.

Do give a thumbs up if you find this helpful.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.