Doubt in a quiz ques

rathi.vishal007
Posts: 2
Joined: Mon Aug 27, 2012 10:07 am

Doubt in a quiz ques

Postby rathi.vishal007 » Mon Aug 27, 2012 12:09 pm

Suppose X follows an AR(1) model : X(t)=0.1+0.8*xt-1+e(t), where ,E(e(t))=0. What is the long term mean of X?
Choose one answer.
a. 0.0000
b. 0.5000
c. 2.0000
d. 0.1250


can you please tell me the detailed solution

akshat
Good Student
Posts: 10
Joined: Wed Aug 22, 2012 11:53 am

Re: Doubt in a quiz ques

Postby akshat » Fri Aug 31, 2012 12:14 pm

There seems some discrepancy in the function given in the question... probably a printing mistake.


Return to “CFA Level I”



Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.