Which of the following property is not true for a random walk process?a. volatility clusteringb. nonstationaryc. strong memoryd. has a unit root

Question

Which of the following property is not true for a random walk process?a. volatility clusteringb. nonstationaryc. strong memoryd. has a unit root
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Solution 1

A random walk process has the following properties:

a. Volatility clustering: This is not a property of a random walk. Volatility clustering refers to the phenomenon when large changes tend to be followed by large changes, of either sign, and small changes tend to be followed by small changes. This Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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