CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

Select the correct statement(s):

I. The cointegrated regression estimates the short-term relation between two time series.
II. A random walk series is a special case of AR (1) model with b0 = 0 and b1 = 1.
A. II only
B. Both are true
C. None of them
Explanation: I: Long-term, not short-term.

User Contributed Comments 2

User Comment
Flavorman The cointegrated regression estimates the longTerm relationship btw 2 time series
Flavorman A random walk series is a special case of AR(1) model with b0=0 & b1=1
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