Given an AR(1) process represented by xt+1 = b0 + b1×xt + et, the process would not be a random walk if: A. b1 = 1. B. E(et)=0. C. the long run mean is b0 + b1.
For a random walk, the long-run mean is undefined. The slope coefficient is one, b1=1, and that is what makes the long-run mean undefined: mean = b0/(1-b1).
