Empirical Research on the Shanghai 50 Index Yield based on the Theory of Partial Quadratic Regression
Yang Shan-li · Financial Theory and Practice · 2013
This paper introduces into the Capital Assets Pricing Model(CAPM) proposed by William Sharpe with multiple factors influencing the return on assets,analyzes factors influencing Chinese stock market according to the quadratic polynomial theory based on partial least-squares,and finds out and avoids multi-collinearity between these factors.Based on above,the most important factors of return on equity are obtained to provide a reliable tool for stork analysis.