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Basic Question 0 of 4
In regression with financial data, the most likely result of heteroskedasticity is that the estimated standard errors will too ______ and the t-statistic will be too ______.
II. large, small
III. small, small
IV. large, large
I. small, large
II. large, small
III. small, small
IV. large, large
User Contributed Comments 2
| User | Comment |
|---|---|
| PhiWong | Consistent with question 4. |
| nsmwaura | Leading to Type 1 error(Rejecting null hypothesis while its true) |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
explain serial correlation and how it affects statistical inference;
CFA® 2025 Level II Curriculum, Volume 1, Module 3.