Financial Risk Manager Part 1
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Which of the following scenarios would produce a forecasting model that exhibits perfect multicollinearity? A model that includes:
A
Only one seasonal dummy that is equal to 1.
B
A holiday variation variable that accounts for an "Easter dummy variable."
C
A trading-day variation variable for modeling trading volume throughout the year.
D
A dummy variable for each season, plus an intercept.
E
II only.
F
I and III.