Page 50 - FINAL CFA II SLIDES JUNE 2019 DAY 3
P. 50
READING 9: TIME SERIES ANALYSIS
What if the current capacity
utilization was 95?
0? The level of manufacturing capacity utilization for the next period (Xt+1) is expected to fall
0
below the current level (Xt), obviously heading towards MRT. Goes without saying for below 67.16?
95 67.16
Note: All covariance stationary time series have a finite MRL. For this, the lag coefficient, |b | < 1. That finite MRL is
1
basically the intercept!
