- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 5. Multiple Regression
- Subject 12. The Durbin-Watson Statistic
CFA Practice Question
If the regression residuals are negatively serially correlated, the Durbin-Watson statistic will be
A. greater than 2.
B. equal to -4.
C. less than 0.
Explanation: d = 2 (1 - r): if r < 0, d > 2.
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