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.

Question

Quizplus · Accepted Answer

Serial correlation measures the correlation between the current return on a security and the past return on the same security or index, not on another security.

Which of the Following Is Not True About Serial Correlation