Scatterplots for Econ 3343 Course Project

The four scatterplots in THIS FILE look like:

This was created in EViews as follows:

 

1.       Hold down the CTRL key and left-click on ‘er_mkt’ and ‘er_r’.

2.       Continuing to hold down the CTRL key, right-click ‘Open’, then right-click on ‘as Group’.

3.       Then left-click on ‘View’, ‘Graph’, ‘Scatter’, and in the ‘Fit Lines’ window click on ‘Regression line’.

4.       After the graph pops up, click on ‘Freeze’ and then ‘Name’; I suggest that you accept the default name of ‘graph01’.

 

Carrying out steps 1-4 three more times, but changing Step 1 as follows: (a) instead of ‘er_mkt’ use ‘crp’; (b) instead of ‘er_mkt’ use ‘smb’; (c) instead of ‘er_mkt’ use ‘hml’. At this point you’ll have four graphs, named ‘graph01’, ‘graph02’, ‘graph03’, and ‘graph04’. Next, you need to edit the labels along the axes of the graphs; for ‘graph01’, the horizontal-axis label is ‘er_mkt’ and the vertical-axis label is ‘er_r’. You can this for each graph as follows: (a) left-click on the graph name to open it; (b) click on an axis label – this allows you to reset what EViews calls the ‘legends’ of the graph; (c) on the right side of the ‘Legends’ box, you can ‘Edit legend entries’ by successively selecting the two different legend entries, e.g., in ‘graph01’, change ‘er_mkt to ‘Excess Return on Market Portfolio’ and ‘er_r’ to ‘Excess Return on xxx’, where ‘xxx’ is the name of the corporation whose stock you’re analyzing.

 

After you’ve properly edited the legends for each of the four graphs:

 

5.       Holding the CTRL key down, left-click on each of the four graphs and then right-click ‘Open’. This will give you a graph like the one above.

 


Last updated: March 29, 2013. Link to: Econ 3343 Course Description. Link to: Econometrics Home Page.