Behavioral Finance
Behavioral Finance. Economics 437. Definition of absence of serial correlation. Let p t-1 , p t-2 , p t-3 , etc. be a series of past prices. Now, think about, p t. E[ p t | info, p t-1 , p t-2 , p t-3 , etc.] = E[ p t | info]. Then, no serial correlation. “Cross Section” vs “Time Series”.
196 views • 8 slides