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Basic Question 7 of 8

In a random walk, any observed trends are likely to be:

A. Temporary and due to randomness.
B. Indicative of a non-random process.
C. Predictable over the long term.
D. A result of seasonality.

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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 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.