Serial correlation:
A)indicates a reversal in the direction of returns when the coefficient is positive.
B)involves only one security.
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

The Answer of Serial correlation:
A)indicates a reversal in the direction of returns when the coefficient is positive.
B)involves only one security.
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.

Serial Correlation