If Data for a Time Series Analysis Are Collected on a Monthly

question 147

Multiple Choice

If data for a time series analysis are collected on a monthly basis only,which component of the time series may be ignored?

• A)Long-term trend
• B)Cyclical variation
• C)Seasonal variation
• D)Random variation

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Definitions:

Shares

Shares represent units of ownership interest in a corporation or financial asset, providing a proportionate claim on its assets and profits.

Geometric Return

The average rate of return per period on an investment, calculated by taking the nth root of the total compounded return, where n is the number of periods.

Investment

The method of apportioning capital with the expectation of financial returns or earnings.

Standard Deviation

A statistical measure that quantifies the variability or dispersion of a set of data points or returns of an investment.