Matrix algebra was covered in the linear regression, multiple regression section and simultaneous equations models. I use simple EViews 6 and matrix algebra examples to facilitate your learning experience and increase your enjoyment. Econometrics is basically related to economic measurement. It...

Mathematical explanation of noise trading from a behavioural Orthodox approach is a complete new subject of research. My model tries to calibrate noise in terms of systematic errors and biases formed by noise traders, as they ignore the religious factors that affect their thoughts and therefore...

Discount persistence explanation from a behavioural point of view is a new area of research for both academics and practitioners. The interactions of both arbitrageurs and noise traders during the life of the fund will enable us to detect the effect of discount persistence based on an investor...

The interaction of arbitrageurs and noise trading from a behavioural Orthodox approach is a new area of research. Noise traders are misled and they are making decisions not on data and forecasts, but based on their personal opinion. Their wrong estimate creates discount persistence throughout...

In this article, we are testing the effects of an inverted Yield curve, as a result of the relationship between the short and long-term interest rates of the US Treasury with constant maturities. Our aim is to illustrate and spot cycles that created the US recession in 2008 based on Estrella and...

We have used a sample of 210 UK investment trusts to test performance persistence in different time periods. We bootstrapped on the monthly returns over successive years over the whole period starting from 01/01/1990 to 01/01/2006. The estimated and simulated return was computed by sampling...

Econometrics is a mixed discipline that requires different degrees of introductory knowledge related to probability, probability distributions, statistics, mathematical economics, calculus, and matrix algebra. For example, random variables are described by probability distributions such as the...

Econometrics is a mixed discipline that requires different degrees of introductory knowledge related to probability, probability distributions, statistics, mathematical economics, calculus, and matrix algebra. For example, random variables are described by probability distributions such as the...

From the standpoint of both the academic researcher and the investment practitioner, it is crucial to be able to identify which factors best capture stock return variation and specifically the discount variation. As a result, there has been a proliferation of research that attempts to identify...

In this article, we have tested the volatility of the returns of the spot exchange rate of EURO/USD, the returns of a real exchange rate index and the money supply, (M1), for changing conditional variances. Autoregressive Conditional Heteroskedastic models (ARCH), Generalized Autoregressive...