Which of the Following Is Not True About Serial Correlation

question 54

Multiple Choice

Which of the following is not true about serial correlation?

• A) It measures the correlation between the current return on a security and the current return on another security.
• B) It involves only one security.
• C) Positive serial correlation indicates a tendency for continuation.
• D) Negative serial correlation indicates a tendency toward reversal.
• E) Significant positive or negative serial correlation coefficients are indicative of market inefficiency in the weak form.

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Definitions:

Endocrine Hormone

Chemical messengers secreted by glands in the endocrine system, traveling through the bloodstream to regulate the functions of distant organs.

Psychosocial Variables

Factors that involve both psychological and social aspects influencing individual behavior and well-being.

Autonomic Nervous System

Part of the nervous system that controls involuntary bodily functions, including heart rate, digestion, and respiratory rate.

Endocrine System

A network of glands that produce and release hormones into the bloodstream to control many bodily functions, including growth, metabolism, and mood.