- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 5. Time-Series Analysis
- Subject 1. Trend Models
CFA Practice Question
Select the correct statement(s):
II. Two time series are cointegrated if they share a common trend.
I. A time series model is a model that predicts the future behavior of a variable based on hypothesized causal relationships with other variables.
II. Two time series are cointegrated if they share a common trend.
A. I only
B. II only
C. Both are true
Explanation: I: It attempts to predict the future behavior of a variable based on the past behavior of the same variable.
User Contributed Comments 1
User | Comment |
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richmondo | i guess 'causal' is the key word here |