## What is important for a loan?

Few months back I read this post, which referred to this amazing. The numbers are for individuals who borrowed money, amounts, term and conditions of the loans and much more. Most of the people naturally paid back the loan in full, however, some did not,

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## OLS beta VS. Robust beta

In financial context, $\beta$ is suppose to reflect the relation between a stock and the general market. A broad based index such as the S&P 500 is often taken as proxy for the general market. The $\beta$, without getting into too much detail, is estimated using the regression: $$stock_i = \beta_0+\beta_1market_i+e_i$$ A $\widehat{\beta_1}$ of say, 1.5 means that when the market goes up 1% the specific stock goes up 1.5%. (Ignoring all the biases at the moment!)

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