Which of the Following Is Not True About Serial Correlation

question 7

Multiple Choice

Which of the following is not true about serial correlation?

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

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Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

High Agreement

A situation or condition where there is a strong or complete consensus among different parties or observations.

Raters

Individuals who evaluate or assess the performance, quality, or characteristics of study subjects or experimental materials.

Investigate Complex Social Settings

The process of examining intricate social environments to understand the dynamics, interactions, and factors that influence behavior and outcomes.