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Basic Question 2 of 11
For a time series to be covariance stationary it means:
II. Its variance does not change over time.
III. The covariance of the time series with itself does not change over time.
IV. There is no auto-correlations of the error term.
I. Its mean does not change over time.
II. Its variance does not change over time.
III. The covariance of the time series with itself does not change over time.
IV. There is no auto-correlations of the error term.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain the instability of coefficients of time-series models;
describe characteristics of random walk processes and contrast them to covariance stationary processes;
CFA® 2025 Level II Curriculum, Volume 1, Module 5.