Quant- Conditional Heteroskedasticity vs Serial Correlation
A little help here: struggling to differentiate between conditional heteroskedasticity and serial correlation. It appears to me that in both violations of regression assumptions, the regression errors are correlated with the independent variables. By the variance of the regression errors being conditioned on the independent variable under conditional heteroskedasticity, doesn’t that also effectively mean those errors are correlated with their independent variable?
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