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Basic Question 5 of 8
In the context of a random walk, the best prediction for the future value is:
A. The current value.
B. The average of past observations.
C. The maximum value in the time series.
D. Not possible due to randomness.
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
explain the instability of coefficients of time-series models;
describe characteristics of random walk processes and contrast them to covariance stationary processes;
CFA® 2025 Level II Curriculum, Volume 1, Module 5.