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Basic Question 14 of 15

Which of the following statements is incorrect?

A. Regression relationships are volatile.
B. As agents become aware of known regression relationships, the predictive power of the relationships gets stronger.
C. The classical assumptions of linear regression may limit the validity of the relationship.

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe a simple linear regression model, how the least squares criterion is used to estimate regression coefficients, and the interpretation of these coefficients

CFA® 2025 Level I Curriculum, Volume 1, Module 10.