Question: Define autocorrelation in returns. What does it mean if returns of a hedge fund have positive autocorrelation? What does it mean if returns of a

Define autocorrelation in returns.

  1. What does it mean if returns of a hedge fund have positive autocorrelation?
  2. What does it mean if returns of a hedge fund have negative autocorrelation?
  3. If hedge fund returns have positive autocorrelation, does it mean that markets are inefficient?

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