error message: matrix nearly singular

[skyline]

Hello,

I was trying to replicate some estimation results and got an error message that matrix is nearly singular. What needs to be done?

[EViews Gareth]

Pretty hard to say without more details. The obvious answer is, you need to figure out what's causing the singular matrix...

[skyline]

Thank you. Would you kindly take a look at the Workfile? We put a reasonably serious amount of work on it.

[skyline]

Hello,

I am working on estimation of a CCAPM model with FF25 assets. Can it be that high correlation among FF25 asset returns cause a singularity problem? If you kindly comment on this issue I will greatly appreciate.

[EViews Gareth]

Co-linear regressors is the most likely cause of singularity in linear models.