Wold theorm

[Jaskarn]

Which of the following is not consistent with the conditions for Wold’s theorem?
A. Rational distributed lags are used to approximate the Wold’s theorem
B. Covariance stationary is a prerequisite for Wold’s theorem
C. Wold’s theorem uses infinite distributed lags
D. The error term in the Wold’s theorem approximation is consistent with white noise

 

[Nicole Seaman]

Which of the following is not consistent with the conditions for Wold’s theorem?
A. Rational distributed lags are used to approximate the Wold’s theorem
B. Covariance stationary is a prerequisite for Wold’s theorem
C. Wold’s theorem uses infinite distributed lags
D. The error term in the Wold’s theorem approximation is consistent with white noise

Hello @Jaskarn,

I was not able to find this question in our question bank (it doesn't look like one of our practice questions). A quick review of Chapters 7 & 8 in our Diebold study notes should answer this question for you. I also found a few forum threads that discuss Wold's theorem by using the search function.

• https://forum.bionicturtle.com/thre...tation-covariant-stationary.11215/#post-53242
  
• https://forum.bionicturtle.com/threads/p1-t2-508-wolds-theorem-diebold.8409/#post-34236
  
• https://forum.bionicturtle.com/thre...erage-arma-processes-diebold.8458/#post-34451

Thank you,

Nicole

 

[David Harper CFA FRM]

Agreed, I can't find this question, we really like to know the source (especially when it's this busy)