converting data from excel to eviews

[dissertationdan]

Hello,

I am writing my dissertation on mutual funds and whether returns are affected by their position with a financial centre (modeled by a dummy variable). I wish first to use a fama-french model:

r_i - r_f = alpha +b1exrm + b2hml + b3smb + e_i

to adjust returns for risk. Then I will regress these returns on the dummy variable. However I am unsure how to convert the data from excel to eviews. I have provided a sample of the data (for one of my time period and those with +1 dummy variable) as an example of how my work is setup. Please can someone advise me on how to proceed?

Many thanks, Dan

[startz]

Drag-and-drop your Excel file onto EViews?

[dissertationdan]

Yes I have tried doing it like this but I am getting a collinearity problem when I run the regression. I think there is a problem with the way I am importing it. I have tried importing the whole sample as panel data but it didn't seem correct. Now I am splitting the whole sample into smaller samples with the same date, so it is more like a cross-section.

[startz]

You might want to post your EViews workfile, including the equation that is giving you a problem.

[dissertationdan]

Good idea. Here it is. The equation I used was excess_return_fc c mkt_rf_fc smb_fc hml_fc mom_fc

[EViews Gareth]

Have you looked at the data in EViews and seen whether it matches the data in Excel? If it matches, the way you imported the data was not wrong :D

[startz]

Have you looked at your data in EViews?

All your right hand side variables are constants.

[dissertationdan]

They are constant because they are the same variable for each observation. They should only vary over time, but I have taken a cross-section here so the time is not changing. Would you recommend using a different method?

[startz]

Yes, use a time series or panel. The cross-section regression is impossible to estimate. This has nothing to do with EViews.

[dissertationdan]

Okay, you're right actually I think it works fine in the panel data setup. I now have the risk adjusted returns. Would you be able to advise me on how to regress these on a dummy variable. Do I need to create a eviews file like the 'dv' one I have here where it looks like 1,0,0,1,0,1 sort of format?

[startz]

Load your data into EViews and then create a dummy variable inside the EViews workfile. Then use that dummy in the regression as you would any other variable.