If Yt Is I(2),then

question 23

Multiple Choice

If Yt is I(2) ,then

• A)Δ2Yt is stationary.
• B)Yt has a unit autoregressive root.
• C)ΔYt is stationary.
• D)Yt is stationary.

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Definitions:

Shares

Ownership units in a corporation or financial asset, shares ensure an equitable share in profits through dividends, when they are announced.

Flotation Costs

Expenses incurred by a company in issuing new securities, including fees to underwriters, legal fees, and registration fees.

Rights Offering

A method by which a company raises additional capital by giving existing shareholders the right to buy new shares at a discount.