- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 5. Time-Series Analysis
- Subject 5. Autoregressive Conditional Heteroskedasticity Models
CFA Practice Question
Heteroskedasticity is the ______ of the error term variance ______ the ______ variable.
B. dependence; on; independent
C. dependence; on; dependent
A. independence; from; independent
B. dependence; on; independent
C. dependence; on; dependent
Correct Answer: B
Homoskedasticity is the independence of the error term variance from the independent variable.
User Contributed Comments 1
| User | Comment |
|---|---|
| Smiley225 | Conditional Heteroskedasticity. |