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:

Working

Engaging in physical or mental activity in order to achieve a purpose or result, typically in a job or profession.

Long-Term

Describes something that occurs over an extended period, often many years.

Sensory Memory

The shortest-term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended.

Blink

A rapid, reflexive closure and reopening of the eyelids, serving as protection for the eyes or as a subtle communication signal.