- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 6. Time-Series Analysis
- Subject 2. Autoregressive (AR) Time-Series Models

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**CFA Practice Question**

Select the correct statement(s).

II. All covariance-stationary time series have a finite mean-reverting level.

I. A trend linear model can be used to predict a time series as long as the R-square is high enough.

II. All covariance-stationary time series have a finite mean-reverting level.

A. II only

B. I and II

C. None of them

**Explanation:**I: We need to make sure that none of the assumptions of linear regression model is violated.

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