FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the GARCH model t2=.00004+.05rt12+.92t12, today's volatility is 65%. Will the forecast of volatility rise or fall and what will be the lon run forecast?

image text in transcribed
In the GARCH model t2=.00004+.05rt12+.92t12, today's volatility is 65%. Will the forecast of volatility rise or fall and what will be the lon run forecast? plain excel sheet.xIsx Long-run forecast is 30.5%. Forecast of volatility will rise. Long-run forecast is 58%. Forecast of volatility will rise. Long-run forecast is 58%. Forecast of volatility will fall. Long-run forecast is 3.65%. Forecast of volatility will fall

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_2

Step: 3

blur-text-image_3

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

Countering Terrorist Finance A Training Handbook For Financial Services

Countering Terrorist Finance A Training Handbook For Financial Services

Authors: Tim Parkman, Gill Peeling

1st Edition

0566087251, 978-0566087257

More Books

Students also viewed these Finance questions

Question

★★★★★
The drawing shows a loudspeaker A and point C, where a listener is positioned. A second loudspeaker B is located somewhere to the right of loudspeaker A. Both speakers vibrate in phase and are...

Answered: 1 week ago

Question

★★★★★
Smith Corporation purchases merchandize on account from a supplier on June 30, 2016 for $4,000 plus GST (5%). On July 5, merchandize is sold for $5,000 plus GST to Customer A on account. Assume that...

Answered: 1 week ago

Question

★★★★★
=+what can be said about the simultaneous prediction level?

Answered: 1 week ago

Question

★★★★★
The Trektronics store begins each week with 300 phasers in stock. This stock is depleted each week and reordered. If the carrying cost per phaser is $38 per year and the fixed order cost is $75, what...

Answered: 1 week ago

Question

★★★★★
In the GARCH model t2=.00004+.05rt12+.92t12, today's volatility is 65%. Will the forecast of volatility rise or fall and what will be the lon run forecast? plain excel sheet.xIsx Long-run forecast is...

Answered: 1 week ago

Question

★★★★★
Required information [The following information applies to the questions displayed below.] The following year-end information is taken from the December 31 adjusted trial balance and other records of...

Answered: 1 week ago

Question

★★★★★
When the manager of a Domino's restaurant assigns to some employees responsibilities for cooking and to others for taking orders from customers this is called? amatrix structure be sharing...

Answered: 1 week ago

Question

★★★★★
List of identified barriers: 1. Poor representation of women, people with disabilities, older people, and recent migrants in management or upper leadership roles, given their increasing presence in...

Answered: 1 week ago

Question

★★★★★
Explain the following question in point form a. What is the disparity amongst American and European options, and how are call and put options regarded early exercise in the United States? (3 points)...

Answered: 1 week ago

Question

★★★★★
A 150-lb drunkard falls in a vat of whiskey. Whiskey has SG = 0.92, whereas the drunkard has SG = 0.99. The drunkard, who wants to stay alive long enough to drink his fill of the whiskey, "treads...

Answered: 1 week ago

Question

★★★★★
Junker's Stash started the Year 2 accounting period with the balances given in the financial statements model shown as follows. During Year 2, Junker's Stash experienced these business events: 1....

Answered: 1 week ago

Question

★★★★★
Apply your own composing style to personalize your messages.

Answered: 1 week ago

Question

★★★★★
Format memos and e-mail properly.

Answered: 1 week ago

Question

★★★★★
Discuss the characteristics of appropriate stationery for letters,memos, and envelopes.

Answered: 1 week ago

Previous Question Next Question