How to use EViews - Examples form Brooks Introductory Econometrics for Finance (3ed)

How to use EViews Unit 1

Create a workfile and import the data

Outline:
- Create a workfile
- Import the data
- OLS analysis (OLS = ordinary least square)

Reading: Brooks 3ed Example 3.1 (p.81~84)

Data: Fund_XXX series form Fund workfile (Fund.wf1)

Create a new workfile :

File New Workfile

How to use EViews - Examples form Brooks Introductory Econometrics for Finance (3ed)

Import the data :

To import an xlsx file into your workfile use File Import Import from
file...

How to use EViews - Examples form Brooks Introductory Econometrics for Finance (3ed)

The Read Text-Lotus-Excel only reads text, lotus and .xls excel files.

The file contains two columns of numbers without header, so the data start in cell
A1 and in the Names for series or Number if named in file box, type
fund_XXX index.

How to use EViews - Examples form Brooks Introductory Econometrics for Finance (3ed)

Estimate a regression model

In the CAPM framework, the regression model is

yt xt t
Where :

yt : the excess return on fund_XXX = rXXX ,t rft

xt : the excess return on market index = rmt rft

Choose 2 variables and open an Equation.

Freeze : Create a output.