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Basic Question 1 of 9

In the linear trend model yt = b0 + b1t + εt, the trend coefficient is

A. b0
B. b1
C. εt.
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User Contributed Comments 2

User Comment
jjenkins7 Why is there zero content for reading 11?
davidt876 it's a test jenkins
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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

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.