STATA

Create a Portfolio and Calculate Portfolio Return in Stata

In this article, we will shed light on the portfolio’s construction and how its returns (both value weighted and equally weighted returns) can be calculated. The data required to construct the portfolio and return is shown in the figure below. The data set is a panel that includes multiple firms’ data for years. Download Example …

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Standardized Variable, normalization and Mean Centering in Stata

This article is focused on standardized variable, normalization of variable and mean centering of variable in Stata. A standardized variable is a variable rescaled to have a mean of zero or close to zero and standard deviation one. Standardizing variables become necessary when the data requires you to assign equal weight to each variable. Once …

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