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Basic Question 8 of 9
Which of the following is least likely a condition for covariance stationary property?
A. The expected value of the time series is constant and finite overtime.
B. The volatility of the time series around its mean varies at a constant rate with time.
C. The covariance of the time series with leading or lagged values of itself is constant.
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I used your notes and passed ... highly recommended!
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.