Consider the Model: Y_t = α₀ + α₁r_t1 + α₂r_t2

question 16

Multiple Choice

Consider the model: y_t = α₀ + α₁r_t1 + α₂r_t2 + u_t.Under weak dependence,the condition sufficient for consistency of OLS is:

• A)E(r_t1|r_t2)= 0.
• B)E(y_t |r_t1,r_t2)= 0.
• C)E(u_t |r_t1,r_t2)= 0.
• D)E(u_t |r_t1,r_t2)= ∞.

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