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Basic Question 6 of 9

A time series with a clear upward or downward trend is likely to be:

A. Covariance stationary
B. Non-stationary
C. Stationary only if the trend is linear

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I used your notes and passed ... highly recommended!
Lauren

Lauren

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.