##### 14 A currency analyst is using simple linear regression analysis to investigate the relationship between the US dollar/Japanese yen exchange rate movements and the risk-free interest rate differential between the two countries. In which of the following situations would the analyst need to examine whether the two time series are cointegrated? | Chartered Financial Analyst Level 2 Quiz - LeetQuiz
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14 A currency analyst is using simple linear regression analysis to investigate the relationship between the US dollar/Japanese yen exchange rate movements and the risk-free interest rate differential between the two countries. In which of the following situations would the analyst need to examine whether the two time series are cointegrated?
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A
A When both time series have unit roots
B
B When neither time series has a unit root
C
C When one time series has a unit root and the other one does not