See EOC question 4 from reading 12.
For the (Decline in NASDAQ spreads) input of 1%, why does the solution input the % in whole numbers rather than decimal?
CFAI Solution: = -.45 + … + .29 ( 1 )
I thought the solution should be: = -.45 + … + .29 ( .01 )
Do you always input percents as a whole number?
Appreciate the help!
i guess it depend on question and data in related exibit, as i understand there is no strikt rule about decimal/percentage rule
From the question: "Researchers Oppenheimer and Sabherwal (2003) hypothesized that the percentage decline in TSE spreads of cross-listed stocks was related to company size, the predecimalization ratio of spreads on NASDAQ to those on the TSE, and the percentage decline in NASDAQ spreads. " The important words in there are “the percentage decline in NASDAQ spreads”. A 1% percentage decline is why 1 is used in the solution and not 0.01 (which would imply a 0.01 percentage decilne).
Ahhh. Thanks, Ed. Very helpful!