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Basic Question 8 of 8
In time series analysis, coefficient instability refers to:
A. The stability of the intercept term.
B. Changes in the coefficients of the model over time.
C. The constant variance of the error term.
D. The autocorrelation of the residuals.
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
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.