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Basic Question 2 of 5

Cointegration in time series analysis refers to the:

A. Independence of two time series.
B. Joint stationarity of two or more non-stationary time series.
C. Absence of autocorrelation in a time series.
D. Seasonal patterns in time series data.

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Craig Baugh

Learning Outcome Statements

explain how time-series variables should be analyzed for nonstationarity and/or cointegration before use in a linear regression;

determine an appropriate time-series model to analyze a given investment problem and justify that choice.

CFA® 2025 Level II Curriculum, Volume 1, Module 5.