Oct
18
Learn Finance with the pros. Better articles, resources and screencasts for easier learning.
A review of ordinary least squares (OLS) linear regression in two parts. Part one reviews the sum of squares concept (sum of squared errors, regressions, and totals), the standard error of the estimate and the coefficient of determination (R2). In part two, we apply the concepts and regress ten years of hedge fund return data against market returns (i.e., are hedge fund returns explained in part by exposure to market risk factors?)
(40 min)