- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 6. Time-Series Analysis
- Subject 2. Autoregressive (AR) Time-Series Models
CFA Practice Question
Which time series is covariance stationary?
II. Microsoft's quarterly sales from 2006 to 2011.
III. The GDP of China from 2005 to 2009.
I. Monthly retail sales in the U.S. from 2006 to 2011.
II. Microsoft's quarterly sales from 2006 to 2011.
III. The GDP of China from 2005 to 2009.
A. I and III
B. II and III
C. None of them
Explanation: Many business time series are not covariance stationary. I: It is a time series with seasonality (non-constant mean). Both II and III were growing during their respective periods.
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