Manual OLS Regression via Matrix Algebra - Quant Researcher Interview Question
Difficulty: Medium
Category: statistical_analysis
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Topics: linear_algebra, regression, numpy, statistics
Problem Description
Calculating asset Beta ($\beta$) and Alpha ($\alpha$) against a benchmark is a fundamental task in quantitative finance for risk assessment and portfolio construction. While high-level libraries exist, implementing the closed-form matrix solution for Ordinary Least Squares (OLS) ensures a deep understanding of the underlying linear algebra and numerical stability issues.
Task
Implement a function solution(x, y) that calculates the intercept ($\alpha$) and slope ($\beta$) of a simple linear regr
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