Unit Root Processes, Such as a Random Walk (With or Without

question 4

Multiple Choice

Unit root processes, such as a random walk (with or without drift) , are said to be:​

• A)​integrated of order one.
• B)​integrated of order two.
• C)​sequentially exogenous.
• D)​asymptotically uncorrelated.

---

Definitions:

Held-To-Maturity

A classification for investment securities that the investor has the intent and ability to hold until they mature.

Available-For-Sale

A classification for investments in securities that are not actively traded or held to maturity, allowing gains or losses to be recorded in equity.

Trading

The act of buying and selling securities, commodities, or other financial instruments in financial markets with the aim of profiting from price movements.

Trading Securities

Financial instruments that are purchased and held primarily for selling them in the near term, with the objective of generating profits on short-term price differences.