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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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Q-81. A risk manager would like to analyze and forecast a security performance and has obtained the historical time series for that security. Based on the Partial Autocorrelation Function (PACF) plot, which of the following is the best regression approach for the security?

[Image blocked: Sample Partial Autocorrelation Function Plot]

A. AR(1) B. MA(1) C. AR(2) D. MA(2)

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