- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 6. Time-Series Analysis
- Subject 5. Autoregressive Conditional Heteroskedasticity Models
CFA Practice Question
Homoskedasticity is the ______ of the error term variance ______ the ______ variable.
A. independence; from; independent.
B. independence; from; dependent.
C. dependence; on; independent.
Explanation: Heteroskedasticity is the dependence of the error term variance on the independent variable.
User Contributed Comments 2
| User | Comment |
|---|---|
| Flavorman | Homoskedasticity==> independence of the error term variance on the independent variable. |
| Flavorman | heteroskedasticity=>dependence of the error variance on the independent variable. |