Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance services an integrated approach

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

14th Edition

133081605, 132575957, 9780133081602, 978-0132575959

More Books

Students also viewed these Accounting questions

Question

How do I feel just before I give in to my bad habit?

Answered: 1 week ago