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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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An individual tasked with managing market risk is focused on analyzing and forecasting the movements of a specific security. They have obtained historical time series data for this security and seek input from a colleague in the quantitative analysis team. The colleague provides a graph illustrating the Partial Autocorrelation Function (PACF) for the data:

Sample Partial Autocorrelation Function 0.5 10 12 14 16 18 20 Lag

Based on the given PACF graph, which regression method would be most appropriate for analyzing the security?

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