Franklin Allen and Douglas gale Topic 1: What is Corporate Finance? Readings A Ph. D. textbook that provides basic coverage of some of the main topics is J. A. de Matos. Theoretical Foundations of Corporate Finance, Princeton: Princeton University Press, 2002) There are many MBa textbooks. A very good one is R.A. Brealey and S.C. Myers, Principles of Corporate Finance, 7th edition(New York
Ch. 21 Univariate Unit Root process 1 Introduction Consider OLS estimation of a AR(1)process, Yt= pYt-1+ut where ut w ii d (0, 0), and Yo=0. The OLS estimator of p is given by and we also have