Serial correlation
A)indicates a reversal in the direction of returns when the coefficient is positive.
B)involves the relationship of one stock's returns over various time periods.
C)indicates a tendency toward reversal when its coefficient is positive.
D)measures the cumulative difference between the returns on two similar securities.
E)measures the current relationship between the returns on two securities.

Question

Quizplus · Accepted Answer

Serial correlation involves the relationship of one stock's returns over various time periods. It measures the extent to which current returns are dependent on prior returns.

Serial Correlation