Which of the Following Statements Is True

question 20

Multiple Choice

Which of the following statements is true?

• A)A random walk process is stationary.
• B)The variance of a random walk process increases as a linear function of time.
• C)Adding a drift term to a random walk process makes it stationary.
• D)The variance of a random walk process with a drift decreases as an exponential function of time.

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Definitions:

Electricity Use

Electricity Use refers to the consumption of electric power by various devices and systems.

Government Involvement

The extent to which the government participates in the economy, including regulation, ownership, and provision of public goods.

Market Inefficiency

This occurs when resources are not allocated optimally in a market, resulting in lost potential value.

Market Outcome

The result of all the buying and selling activities within a particular market, including price levels and quantities traded.