easy · FRM Part 1 Quantitative Analysis

Formula-and-meaning check before application in Quantitative Analysis.

Within Quant — Time Series & Volatility Modeling, which statement correctly describes Autocorrelation?

  1. correlation between a time series and a lagged version of itself
  2. tendency of a process to move back toward a long-run level
  3. volatility estimate that applies geometrically declining weights to older squared returns
  4. a time-series model using one lag of the variable to predict its current value

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