Hi fellow stata users,
I'm currently creating risk-adjusted return on average assets and equity variables, the formula says: RAROAA = ROAA/
ROAA, however, when creating this would I use the standard deviation of ROAA for all the country's or the country-specific ROAA's standard deviation?
Strangely, when using the latter my RAROAE and RAROAA become identical (as seen below) is there a mathematical explanation for this?
input byte c_id str12 country float(quarter RAROAAP RAROAEP ROAAP ROAEP)
1 "Bahrain" 216 1.4368663 1.4368663 1.1854182 10.399576
1 "Bahrain" 217 1.4173816 1.4173816 1.1693434 10.258554
1 "Bahrain" 218 1.2200785 1.2200785 1.0065678 8.830536
1 "Bahrain" 219 1.4316423 1.4316423 1.1811085 10.361768
1 "Bahrain" 220 1.4802856 1.4802856 1.2212393 10.713832
1 "Bahrain" 221 1.0337472 1.0337472 .8528441 7.481931
1 "Bahrain" 222 1.5713747 1.5713747 1.296388 11.373106
1 "Bahrain" 223 1.0307056 1.0307056 .8503346 7.459916
1 "Bahrain" 224 .7673689 .7673689 .6330813 5.55397
1 "Bahrain" 225 1.644462 1.644462 1.3566853 11.902088
1 "Bahrain" 226 .8942655 .8942655 .7377713 6.472407
1 "Bahrain" 227 -1.0138922 -1.0138922 -.8364636 -7.338226
1 "Bahrain" 228 1.0859909 1.0859909 .8959452 7.860053
1 "Bahrain" 229 2.489713 2.489713 2.0540192 18.019741
1 "Bahrain" 230 3.874454 3.874454 3.196434 28.042053
1 "Bahrain" 231 4.928759 4.928758 4.066238 35.67277
1 "Bahrain" 232 1.563655 1.563655 1.2900193 11.317232
1 "Bahrain" 233 1.4206022 1.4206022 1.1720004 10.281863
1 "Bahrain" 234 1.398541 1.398541 1.1537997 10.12219
1 "Bahrain" 235 1.23352 1.23352 1.0176572 8.927823
1 "Bahrain" 236 .2612606 .2612606 .21554065 1.8909203
1 "Bahrain" 237 .59408784 .59408784 .490124 4.299817
1 "Bahrain" 238 .969878 .969878 .8001517 7.019665
1 "Bahrain" 239 1.0711633 1.0711633 .8837124 7.752736
1 "Bahrain" 240 -.04829573 -.04829573 -.0398441 -.349549
1 "Bahrain" 241 .22586364 .22586364 .18633807 1.6347286
1 "Bahrain" 242 .5499511 .5499511 .453711 3.980369
1 "Bahrain" 243 .6189289 .6189289 .5106179 4.479609
1 "Bahrain" 244 .3479024 .3479024 .28702036 2.518006
1 "Bahrain" 245 .6688554 .6688554 .5518074 4.840961
1 "Bahrain" 246 1.0856758 1.0856758 .8956853 7.857773
1 "Bahrain" 247 1.342862 1.342862 1.1078644 9.719203
1 "Bahrain" 248 .24477306 .24477306 .2019384 1.771589
1 "Bahrain" 249 .4867963 .4867963 .4016082 3.5232756
1 "Bahrain" 250 .7773662 .7773662 .6413291 5.626327
1 "Bahrain" 251 1.0326351 1.0326351 .8519265 7.473881
1 "Bahrain" 252 .25266212 .25266212 .2084469 1.8286874
1 "Bahrain" 253 .537833 .537833 .4437135 3.892662
2 "Brunei" 216 2.987094 2.9870944 1.6969948 12.98085
2 "Brunei" 217 2.4279354 2.4279356 1.3793317 10.550943
2 "Brunei" 218 2.6154535 2.615454 1.4858624 11.36583
2 "Brunei" 219 2.65482 2.6548204 1.508227 11.536904
2 "Brunei" 220 1.8363725 1.8363727 1.0432596 7.980222
2 "Brunei" 221 2.5516324 2.551633 1.449605 11.088488
2 "Brunei" 222 2.1930764 2.1930766 1.2459062 9.530331
2 "Brunei" 223 2.0497963 2.0497966 1.1645075 8.907686
2 "Brunei" 224 2.0653224 2.0653226 1.173328 8.975157
2 "Brunei" 225 3.912792 3.912792 2.2228918 17.003603
2 "Brunei" 226 2.3085155 2.3085158 1.3114883 10.031988
2 "Brunei" 227 2.0780075 2.0780077 1.1805346 9.030282
2 "Brunei" 228 2.121701 2.121701 1.2053572 9.220158
2 "Brunei" 229 5.674901 5.674902 3.223962 24.661104
2 "Brunei" 230 4.43977 4.4397707 2.522273 19.293663
2 "Brunei" 231 3.5311306 3.531131 2.0060668 15.345038
2 "Brunei" 232 2.0876887 2.0876887 1.1860344 9.072352
2 "Brunei" 233 1.9229578 1.922958 1.0924494 8.356491
2 "Brunei" 234 2.0951955 2.0951958 1.1902992 9.104975
2 "Brunei" 235 2.7485666 2.748567 1.561485 11.944293
2 "Brunei" 236 3.2033064 3.203307 1.819827 13.92043
2 "Brunei" 237 3.472531 3.4725316 1.9727758 15.090385
2 "Brunei" 238 3.750477 3.750478 2.1306796 16.29824
2 "Brunei" 239 3.797891 3.797891 2.1576154 16.504282
2 "Brunei" 240 1.859472 1.8594724 1.0563827 8.0806055
2 "Brunei" 241 3.560495 3.5604954 2.022749 15.472645
2 "Brunei" 242 3.620144 3.620144 2.0566359 15.731857
2 "Brunei" 243 3.3569765 3.356977 1.9071282 14.588226
2 "Brunei" 244 2.0907977 2.090798 1.1878008 9.085863
2 "Brunei" 245 2.765973 2.765973 1.5713738 12.019935
2 "Brunei" 246 3.138897 3.1388974 1.7832353 13.64053
2 "Brunei" 247 2.619353 2.619353 1.4880776 11.382775
2 "Brunei" 248 .4555284 .4555284 .25878975 1.9795644
2 "Brunei" 249 .8808267 .8808267 .50040543 3.8277595
2 "Brunei" 250 1.9276674 1.9276676 1.095125 8.376957
2 "Brunei" 251 2.5851355 2.585136 1.4686385 11.23408
2 "Brunei" 252 4.199254 4.1992545 2.385634 18.248465
2 "Brunei" 253 3.8265436 3.826544 2.1738935 16.628798
3 "Indonesia" 216 .9118978 .9118979 1.0382915 9.222662
3 "Indonesia" 217 .52480286 .5248029 .5975432 5.307699
3 "Indonesia" 218 .4269107 .4269107 .4860826 4.317647
3 "Indonesia" 219 .3305048 .3305048 .3763144 3.342627
3 "Indonesia" 220 .4640501 .4640501 .5283698 4.693264
3 "Indonesia" 221 .3320439 .33204395 .3780668 3.358193
3 "Indonesia" 222 .2873552 .28735524 .3271841 2.906225
3 "Indonesia" 223 .3108291 .3108292 .3539116 3.143633
3 "Indonesia" 224 .6448349 .6448349 .7342122 6.521667
3 "Indonesia" 225 .5124368 .51243687 .58346313 5.182632
3 "Indonesia" 226 .4484679 .4484679 .5106278 4.5356703
3 "Indonesia" 227 .443932 .443932 .5054632 4.489795
3 "Indonesia" 228 .9578903 .9578903 1.0906587 9.687816
3 "Indonesia" 229 .9665175 .9665176 1.1004817 9.775069
3 "Indonesia" 230 .8650405 .8650405 .9849394 8.74876
3 "Indonesia" 231 .526319 .5263191 .5992695 5.323033
3 "Indonesia" 232 1.1727697 1.1727698 1.3353214 11.861042
3 "Indonesia" 233 1.269174 1.269174 1.4450878 12.836046
3 "Indonesia" 234 1.2565312 1.2565314 1.4306927 12.70818
3 "Indonesia" 235 1.1808057 1.1808058 1.3444712 11.942315
3 "Indonesia" 236 1.4588736 1.4588737 1.661081 14.754612
3 "Indonesia" 237 1.6381495 1.6381496 1.865205 16.567753
3 "Indonesia" 238 1.667167 1.6671672 1.8982447 16.861229
3 "Indonesia" 239 1.8076553 1.8076556 2.0582054 18.282085
Any help with clarifying which standard deviation would be much appreciated,
Many thanks,
Michael.
I'm currently creating risk-adjusted return on average assets and equity variables, the formula says: RAROAA = ROAA/
Strangely, when using the latter my RAROAE and RAROAA become identical (as seen below) is there a mathematical explanation for this?
input byte c_id str12 country float(quarter RAROAAP RAROAEP ROAAP ROAEP)
1 "Bahrain" 216 1.4368663 1.4368663 1.1854182 10.399576
1 "Bahrain" 217 1.4173816 1.4173816 1.1693434 10.258554
1 "Bahrain" 218 1.2200785 1.2200785 1.0065678 8.830536
1 "Bahrain" 219 1.4316423 1.4316423 1.1811085 10.361768
1 "Bahrain" 220 1.4802856 1.4802856 1.2212393 10.713832
1 "Bahrain" 221 1.0337472 1.0337472 .8528441 7.481931
1 "Bahrain" 222 1.5713747 1.5713747 1.296388 11.373106
1 "Bahrain" 223 1.0307056 1.0307056 .8503346 7.459916
1 "Bahrain" 224 .7673689 .7673689 .6330813 5.55397
1 "Bahrain" 225 1.644462 1.644462 1.3566853 11.902088
1 "Bahrain" 226 .8942655 .8942655 .7377713 6.472407
1 "Bahrain" 227 -1.0138922 -1.0138922 -.8364636 -7.338226
1 "Bahrain" 228 1.0859909 1.0859909 .8959452 7.860053
1 "Bahrain" 229 2.489713 2.489713 2.0540192 18.019741
1 "Bahrain" 230 3.874454 3.874454 3.196434 28.042053
1 "Bahrain" 231 4.928759 4.928758 4.066238 35.67277
1 "Bahrain" 232 1.563655 1.563655 1.2900193 11.317232
1 "Bahrain" 233 1.4206022 1.4206022 1.1720004 10.281863
1 "Bahrain" 234 1.398541 1.398541 1.1537997 10.12219
1 "Bahrain" 235 1.23352 1.23352 1.0176572 8.927823
1 "Bahrain" 236 .2612606 .2612606 .21554065 1.8909203
1 "Bahrain" 237 .59408784 .59408784 .490124 4.299817
1 "Bahrain" 238 .969878 .969878 .8001517 7.019665
1 "Bahrain" 239 1.0711633 1.0711633 .8837124 7.752736
1 "Bahrain" 240 -.04829573 -.04829573 -.0398441 -.349549
1 "Bahrain" 241 .22586364 .22586364 .18633807 1.6347286
1 "Bahrain" 242 .5499511 .5499511 .453711 3.980369
1 "Bahrain" 243 .6189289 .6189289 .5106179 4.479609
1 "Bahrain" 244 .3479024 .3479024 .28702036 2.518006
1 "Bahrain" 245 .6688554 .6688554 .5518074 4.840961
1 "Bahrain" 246 1.0856758 1.0856758 .8956853 7.857773
1 "Bahrain" 247 1.342862 1.342862 1.1078644 9.719203
1 "Bahrain" 248 .24477306 .24477306 .2019384 1.771589
1 "Bahrain" 249 .4867963 .4867963 .4016082 3.5232756
1 "Bahrain" 250 .7773662 .7773662 .6413291 5.626327
1 "Bahrain" 251 1.0326351 1.0326351 .8519265 7.473881
1 "Bahrain" 252 .25266212 .25266212 .2084469 1.8286874
1 "Bahrain" 253 .537833 .537833 .4437135 3.892662
2 "Brunei" 216 2.987094 2.9870944 1.6969948 12.98085
2 "Brunei" 217 2.4279354 2.4279356 1.3793317 10.550943
2 "Brunei" 218 2.6154535 2.615454 1.4858624 11.36583
2 "Brunei" 219 2.65482 2.6548204 1.508227 11.536904
2 "Brunei" 220 1.8363725 1.8363727 1.0432596 7.980222
2 "Brunei" 221 2.5516324 2.551633 1.449605 11.088488
2 "Brunei" 222 2.1930764 2.1930766 1.2459062 9.530331
2 "Brunei" 223 2.0497963 2.0497966 1.1645075 8.907686
2 "Brunei" 224 2.0653224 2.0653226 1.173328 8.975157
2 "Brunei" 225 3.912792 3.912792 2.2228918 17.003603
2 "Brunei" 226 2.3085155 2.3085158 1.3114883 10.031988
2 "Brunei" 227 2.0780075 2.0780077 1.1805346 9.030282
2 "Brunei" 228 2.121701 2.121701 1.2053572 9.220158
2 "Brunei" 229 5.674901 5.674902 3.223962 24.661104
2 "Brunei" 230 4.43977 4.4397707 2.522273 19.293663
2 "Brunei" 231 3.5311306 3.531131 2.0060668 15.345038
2 "Brunei" 232 2.0876887 2.0876887 1.1860344 9.072352
2 "Brunei" 233 1.9229578 1.922958 1.0924494 8.356491
2 "Brunei" 234 2.0951955 2.0951958 1.1902992 9.104975
2 "Brunei" 235 2.7485666 2.748567 1.561485 11.944293
2 "Brunei" 236 3.2033064 3.203307 1.819827 13.92043
2 "Brunei" 237 3.472531 3.4725316 1.9727758 15.090385
2 "Brunei" 238 3.750477 3.750478 2.1306796 16.29824
2 "Brunei" 239 3.797891 3.797891 2.1576154 16.504282
2 "Brunei" 240 1.859472 1.8594724 1.0563827 8.0806055
2 "Brunei" 241 3.560495 3.5604954 2.022749 15.472645
2 "Brunei" 242 3.620144 3.620144 2.0566359 15.731857
2 "Brunei" 243 3.3569765 3.356977 1.9071282 14.588226
2 "Brunei" 244 2.0907977 2.090798 1.1878008 9.085863
2 "Brunei" 245 2.765973 2.765973 1.5713738 12.019935
2 "Brunei" 246 3.138897 3.1388974 1.7832353 13.64053
2 "Brunei" 247 2.619353 2.619353 1.4880776 11.382775
2 "Brunei" 248 .4555284 .4555284 .25878975 1.9795644
2 "Brunei" 249 .8808267 .8808267 .50040543 3.8277595
2 "Brunei" 250 1.9276674 1.9276676 1.095125 8.376957
2 "Brunei" 251 2.5851355 2.585136 1.4686385 11.23408
2 "Brunei" 252 4.199254 4.1992545 2.385634 18.248465
2 "Brunei" 253 3.8265436 3.826544 2.1738935 16.628798
3 "Indonesia" 216 .9118978 .9118979 1.0382915 9.222662
3 "Indonesia" 217 .52480286 .5248029 .5975432 5.307699
3 "Indonesia" 218 .4269107 .4269107 .4860826 4.317647
3 "Indonesia" 219 .3305048 .3305048 .3763144 3.342627
3 "Indonesia" 220 .4640501 .4640501 .5283698 4.693264
3 "Indonesia" 221 .3320439 .33204395 .3780668 3.358193
3 "Indonesia" 222 .2873552 .28735524 .3271841 2.906225
3 "Indonesia" 223 .3108291 .3108292 .3539116 3.143633
3 "Indonesia" 224 .6448349 .6448349 .7342122 6.521667
3 "Indonesia" 225 .5124368 .51243687 .58346313 5.182632
3 "Indonesia" 226 .4484679 .4484679 .5106278 4.5356703
3 "Indonesia" 227 .443932 .443932 .5054632 4.489795
3 "Indonesia" 228 .9578903 .9578903 1.0906587 9.687816
3 "Indonesia" 229 .9665175 .9665176 1.1004817 9.775069
3 "Indonesia" 230 .8650405 .8650405 .9849394 8.74876
3 "Indonesia" 231 .526319 .5263191 .5992695 5.323033
3 "Indonesia" 232 1.1727697 1.1727698 1.3353214 11.861042
3 "Indonesia" 233 1.269174 1.269174 1.4450878 12.836046
3 "Indonesia" 234 1.2565312 1.2565314 1.4306927 12.70818
3 "Indonesia" 235 1.1808057 1.1808058 1.3444712 11.942315
3 "Indonesia" 236 1.4588736 1.4588737 1.661081 14.754612
3 "Indonesia" 237 1.6381495 1.6381496 1.865205 16.567753
3 "Indonesia" 238 1.667167 1.6671672 1.8982447 16.861229
3 "Indonesia" 239 1.8076553 1.8076556 2.0582054 18.282085
Any help with clarifying which standard deviation would be much appreciated,
Many thanks,
Michael.
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