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Consider a stationary AR(1) process rt = Qrt-1 + Et, where o Consider a stationary AR(I) process rt +rtl + Et, where < 1 and

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Consider a stationary AR(1) process rt = Qrt-1 + Et, where o

Consider a stationary AR(I) process rt +rtl + Et, where < 1 and (Et) is an i.i.d. white noise process. Show that the theoretical variace ratio is equal to VR(q) 1 +2

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