Which one of these serial correlation values is the strongest indicator of price continuation?
A)-0.5
B)-0.25
C)0
D)+0.25
E)+0.5

Question

Quizplus · Accepted Answer

A positive serial correlation value is an indicator that prices are more likely to continue in the same direction, therefore a larger positive value (+0.5) is a stronger indicator than a smaller positive value (+0.25) or a negative value (-0.5 or -0.25). Choice E has the highest positive value.

Which One of These Serial Correlation Values Is the Strongest