CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

A random walk is a special case of an AR (1) model with
A. b0 = 0 and b1 = 0.
B. b0 = 1 and b1 = 0.
C. b0 = 0 and b1 = 1.
Explanation: b0 = 0 and b1 = 1 so xt = xt-1 + εt

User Contributed Comments 0

You need to log in first to add your comment.