Serial Correlation

question 35

Multiple Choice

Serial correlation

• A)tends to prove that markets are totally inefficient.
• B)supports weak form efficiency.
• C)coefficients tend to range between 0.75 and 1.
• D)is best used to identify insider trading.
• E)best indicates that markets are semi-strong form efficient.

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Definitions:

Accrued Liability

A liability that has been incurred, often for expenses, that has not yet been paid or recorded at the end of the accounting period.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.

Liquidity

A company's ability to meet its short-term obligations using its most liquid assets, indicating financial health.