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This is the Eviews Correlogram. "The column to the left of AC gives k, the number of time periods used to calculate k. The AC column gives k. The graph of k is shown by horizontal bars in the firstcolumn headed by "Autocorrelation". Positive k s are drawn to the right of the zero line.

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EconometricsNow run the regression correcting for serial correlation by including AR(1) in the regression. Do the coefficients make sense now? Correct for second order serial correlation (add AR(1) and

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Financial EconometricsACF is significant across the years. However, at year 1 it is quite high but it has a decreasing uniform trend across the years; implying that the data is not stationary.
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EconometricsIt is because of the changes in level B taking place before those in level A. Allowing B to precede A would result in modifications in A before B and therefore, giving a positive feedback as opposed to the current

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