Ultimate access to all questions.
A risk manager at a leading global bank is conducting a time series analysis on equity returns. The objective is to ascertain whether the time series data exhibits covariance stationarity, a crucial property for reliable statistical inference and modeling. Covariance stationarity implies that the statistical properties of the time series do not change over time. Which of the following statements outlines one of the criteria that must be met for a time series to achieve covariance stationarity?