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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