Which of the following is true for modelling volatility ? I. GARCH models belong to the RW3 class of models II. GARCH models are powerful due to the fact that the assumption of constant volatility is not reflected in real data III. Price decreases tend to be associated with more volatility, while price increases are not IV. The basic concept of ARCH is that the conditional variance of the increments is conditionally heteroscedastic and non-normal

Select one: a. I, II, III, IV

b. I, IV

c. I, II, III

d. II, III

e. None of the options