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b. Table 2 below reports the estimated Akaike (AIC) and Schwarz Bayesian (SBC) criteria for various lags of order q (for the moving average part)

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b. Table 2 below reports the estimated Akaike (AIC) and Schwarz Bayesian (SBC) criteria for various lags of order q (for the moving average part) and p (for the autoregressive part). The data utilized to estimate the criteria below are the nominal returns of S&P500 (the first difference of the log S&P500 index) using monthly data for the period 1970-2018. What is the suggested model(s) under both the AIC and SBC criteria? Explain in detail your answer. Table 2. AIC and SBC Information Criteria q 0 1 2 3 p AIC 0 -5.605 -5.629 -5.632 -5.633 1 -5.621 -5.631 -5.626 -5.629 2 -5.622 -5.624 -5.648 -5.647 3 -5.634 -5.629 -5.629 -5.649 SBC 0 -5.594 -5.608 -5.601 -5.590 1 -5.600 -5.599 -5.584 -5.576 2 -5.659 -5.582 -5.596 -5.583 3 -5.591 -5.576 -5.655 -5.571 [10 Marks]

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