Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How would you measure (not forecast) the volatility of a financial asset on a particular day? Would you use the same strategy to measure the
How would you measure (not forecast) the volatility of a financial asset on a particular day? Would you use the same strategy to measure the volatility of an exchange rate (say Euro/dollar) on a specific day?
I assume this is different from the GARCH(1,1) model- my understanding of this model is that it is used to estimate the long-run average volatility for a time period t or to forecast the volatility on day h.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started