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Basic Question 1 of 4

Heteroskedasticity is the ______ of the error term variance ______ the ______ variable.

A. independence; from; independent
B. dependence; on; independent
C. dependence; on; dependent
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User Contributed Comments 1

User Comment
Smiley225 Conditional Heteroskedasticity.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

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® 2024 Level II Curriculum, Volume 1, Module 5.