The Model That Assumes That the Actual Time Series Value

question 41

Multiple Choice

The model that assumes that the actual time series value is the product of its components is the _____.

• A) linear trend regression model
• B) multiplicative decomposition model
• C) additive time series model
• D) weighted moving average model

---

Definitions:

Perpetuity

Bond paying out a fixed amount of money each year, forever.

Yearly Payment

The amount of money paid or received over the course of a year for any financial transaction or obligation.

Effective Yield

The total yield of an investment after accounting for compounding interest, often expressed on an annual basis.

Perpetuity

A financial term referring to a type of annuity that pays a series of payments indefinitely, with no end.