HAC Standard Errors and Robust Inference intermediate

When forecast errors have memory, the coefficient may stay the same while the t-statistic should not.

When forecast errors have memory, the coefficient may stay the same while the t-statistic should not.

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References

The Statistics of Sharpe Ratios
Andrew W. Lo (2002)
A Simple, Positive Semi-Definite, Heteroskedasticity and AutocorrelationConsistent Covariance Matrix
Whitney K. Newey, Kenneth D. West (1986)