copy(c=litmana) A\series01 without rho and @indicator?

[paues]

In the Command Reference under copy and Frequency Conversion Options, we learnt that we can write something like

Code: Select all

copy(c=litmana, rho=0.7) A\series01 @indicator Q\indseries

to copy a series using Litterman conversions. The documentation specifies that we must specify an indicator series but doesn't say what value is used for rho if one doesn't specify it oneself. But EViews doesn't throw an error if we simply write

Code: Select all

copy(c=litmana) A\series01

That is, without either an indicator series or a value for rho. But what happens in this latter case? I'm confused...

[EViews Gareth]

EViews will use an ML estimator to estimate rho, if it isn't supplied.
An indicator series of a constant value of 1 is used if none is supplied.

https://eviews.com/help/helpintro.html# ... 23ww268576