A
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Quantitative AnalysisMedium

An analyst examines the autocorrelation function (ACF) and partial autocorrelation function (PACF) of a stationary time series. The ACF decays gradually while the PACF shows a sharp cutoff after lag 2. The appropriate model is most likely:

FRM Part I — Quantitative Analysis Practice Question | AcadiFi | AcadiFi