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Positive Autocorrelation Is Present in a Time Series When We

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Positive autocorrelation is present in a time series when we observe a pattern of positive or negative residuals in succession.


Definitions:

ROI

Return on Investment, a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments.

Required Rate

A term often used to signify the minimum return or yield that investors expect from an investment, considering the risk involved.

Average Operating Assets

A metric representing the average value of the assets involved in the operating activities of a business over a period.

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