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What is a random walk

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1. What is meant by a trend-stationary process (TSP) and a difference- stationary process (DSP)?
2. What is a random walk (model)?
3. "For a random walk stochastic process, the variance is in?nite." Do you agree? Why?
4. What is the error correction mechanism (ECM)? What is its relation with cointegration?

Reference no: EM13881263

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