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Basic Question 0 of 6

If linear regression is used to model the relationship between two time series, and a test shows that one of the two time series has a unit root, we should:

A. not use linear regression.
B. safely use linear regression if the time series are co-integrated.
C. not use linear regression if the time series are not co-integrated.

User Contributed Comments 1

User Comment
wtwaf key words: one of the two

good question!
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

explain how forward rates are determined for interest rate forward contracts and describe the uses of these forward rates

CFA® 2025 Level I Curriculum, Volume 5, Module 5.