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Basic Question 1 of 5

One method to correct for heteroscedasticity is to compute robust standard errors. It involves:

A. Direct modifications to the t-statistics to account for conditional heteroskedasticity.
B. Generalizing the least squares regression to correct for conditional heteroskedasticity.
C. Direct modifications to the standard errors to account for conditional heteroskedasticity.

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain the types of heteroskedasticity and how it affects statistical inference;

CFA® 2025 Level II Curriculum, Volume 1, Module 3.