Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 2 of 5
In regression with financial data, the most likely result of heteroskedasticity is that the estimated standard errors will too ______ and the t-statistic will be too ______.
II. large, small
III. small, small
IV. large, large
I. small, large
II. large, small
III. small, small
IV. large, large
User Contributed Comments 2
| User | Comment |
|---|---|
| PhiWong | Consistent with question 4. |
| nsmwaura | Leading to Type 1 error(Rejecting null hypothesis while its true) |
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
Learning Outcome Statements
explain the types of heteroskedasticity and how it affects statistical inference;
CFA® 2025 Level II Curriculum, Volume 1, Module 3.