Answer: 0.1923

For an MA(1) process defined as $y_t = \varepsilon_t + \theta\varepsilon_{t-1}$, the autocorrelation at lag 1 is given by: $$ \rho_1 = \frac{\theta}{1 + \theta^2} $$ Given $\theta = 0.2$: $$ \rho_1 = \frac{0.2}{1 + (0.2)^2} = \frac{0.2}{1 + 0.04} = \frac{0.2}{1.04} = 0.192307... \approx 0.1923 $$ Therefore, the correct answer is 0.1923.

Author: Nikitesh Somanthe