Dear Statalist,
I am conducting a long-run event study with the use of the Fama French 3 Factors model.
I am using the WLS regression, I want to use the monthly number of firms in the event portfolio as weights. Moreover, I want to use the equal-weighted monthly returns on each portfolio.
First of all, I uploaded the excel file and changed the format of the Date2 from string to Date3 variable (monthly format), then I declared the data set to be time series data.
I intend to use the Stata command wlsreg or wls0 with the options: wvar = No. of firms in the event portfolio in a month type(wlstype) - The choices are: abse - absolute value of residual e2 (With the dependent variable is the company name, explanatory variables are MktRF, SMB, and HML.
Could anyone please help me with the Stata command for WLS regression? I am very grateful.
Thank you and Kind regards,
Chi
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