Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 1 of 9
In the linear trend model yt = b0 + b1t + εt, the trend coefficient is
B. b1
C. εt.
A. b0
B. b1
C. εt.
User Contributed Comments 2
| User | Comment |
|---|---|
| jjenkins7 | Why is there zero content for reading 11? |
| davidt876 | it's a test jenkins |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
calculate and evaluate the predicted trend value for a time series, modeled as either a linear trend or a log-linear trend, given the estimated trend coefficients;
describe factors that determine whether a linear or a log-linear trend should be used with a particular time series and evaluate limitations of trend models;
explain the requirement for a time series to be covariance stationary and describe the significance of a series that is not stationary;
CFA® 2025 Level II Curriculum, Volume 1, Module 5.