CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

Which time series is covariance stationary?

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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