* The folloowing three commands are not essential.
clear
set memory 40m
set more off

*Use this if you want to save the estimation results in a log file.
log using assets2.log, replace

*Reading the data file
insheet  using "C:\Documents and Settings\jlee\My Documents\Teaching\EC671\assets2.dat"
** variables are:  rmrf smb hml umd rf r1 r2 r3 r4 r5 r6 r7 r8 r9 r10 using assets2.dat

*Saving the data file
save assets2_revised

*next time, to use the stata do file,
*use "C:\Documents and Settings\jlee\My Documents\Teaching\EC671\assets2_revised.do", clear

*Descriptive statistic
sum
*or
summarize _all

*regression
reg r1 rmrf
reg r1 rmrf, robust

*saving predicted values, residuals 
predict pred, xb
predict res, residuals

*exercises with partitioned matrices
reg r1 rmrf smb
reg rmrf smb
predict res_rmrf, residuals
reg r1 res_rmrf

*RESET tests
reg r1 rmrf smb
predict r1_y, xb
gen y2 = r1_y^2
gen y3 = r1_y^3
reg r1 rmrf smb y2 y3
test y2 y3