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\noindent {\large BOSTON\ COLLEGE} \\
Department of Economics \\ 
EC 327 Financial Econometrics \\
Prof.\ Baum, Mr.\ Zago, Spring 2014
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\noindent{\sc Problem Set 3}

\noindent{\bf Due at classtime, Monday 10 March 2014}

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Problem sets should be your own work. You may work together with classmates,
but if you're not figuring this out on your own, you will eventually regret
it.

%For the Stata problems, you will not make use of the 
%RAW files listed in the text, as all of these data are available in Stata format over
%the Internet. Please consult the "Wooldridge datasets: descriptions and access commands" link on the course home page. All you need to do is copy the "use http://fmwww..." line from each dataset to be used into Stata's command window. The name of each dataset is that given in the text, without the .RAW extension; e.g. FERTIL1.RAW is referred to as  just FERTIL1 (with no period nor extension). For example, \\{\tt 
%.use http://fmwww.bc.edu/ec-p/data/wooldridge/fertil1}

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For each of the empirical problems, hand in a printout from Stata, annotated with your comments.
The "log" icon in the Stata toolbar may be used to create a file containing both your commands and Stata's 
response. It may be easier to work with a text-format log; the command {\tt log using ps2.log} will create a 
text log. Use the 'Viewer' within Stata to examine and print the log.

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\noindent Chapter 17:

\begin{enumerate}
\item Problem 1
\item Problem 2
\item Problem 6
\item Problem C2
\item Problem C3
\item Problem C6
\item Problem C9
\item Problem C13
\end{enumerate}



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