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Basic Question 0 of 9

When multicollinearity is present in a linear regression, which of the following is true?

I. The residuals will be serially correlated.
II. The regression cannot be estimated.
III. The interpretation of the regression is problematic.
IV. The t-statistics will be too large.

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

explain the types of heteroskedasticity and how it affects statistical inference;

CFA® 2025 Level II Curriculum, Volume 1, Module 3.