The Most Useful Tool to Identify the Trend Component of a Time

question 92

Multiple Choice

The most useful tool to identify the trend component of a time series is

• A) moving averages.
• B) exponential smoothing.
• C) regression analysis.
• D) the MAD approach.

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Definitions:

Maturity at Issue

The predetermined date when a financial instrument, such as a bond, will come due and the principal is to be paid back to investors.

Default Risk

The potential risk that an issuer of a bond or other debt security will be unable to make principal and interest payments when due.

Collateral Trust Bond

A type of bond that is secured by a pledge of collateral, typically securities, placed under the trust of a third party.

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives) that can be bought and sold in financial markets.