Question
Your employer offers you retirement accounts at Vanguard, which has a variety of funds you can choose from. You are thinking about allocating your retirement
Your employer offers you retirement accounts at Vanguard, which has a variety of funds you
can choose from. You are thinking about allocating your retirement money among a US
equity index fund (symbol VIIIX) and a US bond index fund (symbol VBTIX). The first
thing you would like to know is the extent of diversification your portfolio would potentially
glean. In other words, you want to have a sense of the dynamic correlation of the two funds
over time. Describe how you would estimate the dynamic correlations using a GARCH(1,1)
type of model. ()
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Calculus With Vectors
Authors: Jay S Treiman
1st Edition
3319094386, 9783319094380
