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The exponentially smoothed volatility estimate EWMA 0; = 104-2 + (1 - )r-1 is calculated with smoothing parameters lambda=.96 and .94. Will lambda=.96 have a

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The exponentially smoothed volatility estimate EWMA 0; = 104-2 + (1 - )r-1 is calculated with smoothing parameters lambda=.96 and .94. Will lambda=.96 have a smoother volatility than the value of .94? Is the process stable? What is the long run volatility forecast? The exponentially smoothed volatility estimate EWMA 0; = 104-2 + (1 - )r-1 is calculated with smoothing parameters lambda=.96 and .94. Will lambda=.96 have a smoother volatility than the value of .94? Is the process stable? What is the long run volatility forecast

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