Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 8 of 8
Which statistical test is commonly used to diagnose the presence of ARCH effects in residuals?
A. Durbin-Watson test.
B. Augmented Dickey-Fuller test.
C. Engle's ARCH LM test.
D. Shapiro-Wilk test.
User Contributed Comments 0
You need to log in first to add your comment.
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
explain autoregressive conditional heteroskedasticity (ARCH) and describe how ARCH models can be applied to predict the variance of a time series;
CFA® 2025 Level II Curriculum, Volume 1, Module 5.