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: November 10, 2014. Link to: Econ 3343 Course
Description.