If You Reject the Null Hypothesis When Testing for ARCH

question 5

Multiple Choice

If you reject the null hypothesis when testing for ARCH effects,what should you conclude?

• A)the variance changes over time
• B)the variance is constant
• C)the mean is constant
• D)the mean varies over time

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Definitions:

Financial Statement Column(s)

Columns in financial statements where various financial data are reported, such as assets, liabilities, revenues, and expenses.

Net Income

The net income of a company once all costs and taxes are subtracted from the total income.

Beginning Inventory

The estimated financial value of items ready to be sold at the onset of a ledger year.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment, showing assets, liabilities, and shareholders' equity.