Reading in the factors is identical to reading in price data.

First, click on the button Factor Data in the module.

Second, click on Find Excel Spreadsheet and select factors.xls sheet 1.

Third, fill in cell information as above. Names row 1, Factors W to Z and data from rows 2 to 382. Select Use Factor Levels.

Important Note: If factors are in difference form (positive and negative numbers) then select "use factor levels." Now you must be careful to line up factors with returns. The module tells you the number of returns. In the current examples there are 381 return observations per security. This implies that that 381 factor levels are required. To specify the first 381 factor levels enter rows 2 to 382.

Fourth, click on Initialize and then double click above the first factor to select all factors. Finally, click on OK to get the data into the module.

Note: If an error message is triggered check that you have clicked beside "Use factor levels" for this default data.

In general, you need to be careful the way you specify factor data. Erros can occur if you do not specify whether you are working with factor levels or factor returns. You can read th enote below "Convert factors to returns" in the module.

Also with your own data the Factor Module is intolerant to missing data. The advantage of linking to an Excel Spreadsheet is that data cleaning is much easier to do in Excel prior to linking to the Factor Module.