What is the most common type of garch model used

Assignment Help Finance Basics
Reference no: EM131792737

Question: 1. Explain what is meant, by an Ito process. Explain why an ho process is more applicable to describing stochastic processes underlying asset prices as compared to either the basic Wiener process or the generalized Wiener process.

2. Define and explain dearly ARCH and GARCH effects. What is the most common type of GARCH model used in practice? Briefly outline sonic extensions to the GARCH model.

Reference no: EM131792737

Questions Cloud

What are the total monthly revenues costs : If Sand Dollar Art's monthly cost function is C(x) = 400 + 100x - x2 find the profit-maximizing monthly quantity. What are the total monthly revenues.
Calculate the delta of the european put futures option : Employing the Black-Scholes model calculate the value of a three-month European put futures option when the futures price is euro 4.50.
What is the annual accounting income : Increase in working capital $28,500 and Before tax annual cash inflows $44,000. What is the annual accounting income
What is true about lemon laws : What is true about lemon laws? An action for breach of contract under the UCC must be brought:
What is the most common type of garch model used : Explain what is meant, by an Ito process. Explain why an ho process is more applicable to describing stochastic processes underlying asset prices as compared.
How many bicycles should the company purchase in may : On the basis of the information presented, how many bicycles should the company purchase in May
Find the point of inflection of the graph of this function : The numbers of millions of Social Security beneficiaries for selected years and projected into the future are given in the table.
Calculate current stock price : Ezdan Company Just paid a dividend of $12.50 per share on its stock. The dividends are expected to grow at a constant rate of 5% per year, indefinitely.
At what amount should the gain from the sale : The prevailing rate of interest for a note of this type on January 1, 2010, was 9%. At what amount should the gain from the sale of the building be reported

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the current market value of tracer''s bond

If investors require a return equal to 5 percent to invest in similar bonds, what is the current market value of Tracer's bond?

  Samuelsons has a debt-equity ratio of 43 percent sales of

samuelsons has a debt-equity ratio of 43 percent sales of 10000 net income of 1700 and total debt of 8700. what is the

  Calculate the daily gain

On 6/5/2014, an investor buys 7 gold futures contracts, when the futures price is $1400 per ounce. The contract size is 100 ounces. The next day, the futures price becomes $1,396.27. Calculate the daily gain.

  If fred becomes disabled determine which of the following

1. which of the following in addition to current arrangements would generate a taxable gift?a. a gift of14000 from the

  Briefly discuss why you agree or do not agree with the state

Briefly discuss why you agree or do not agree with the statement that “breakeven analysis isn’t very useful to a company because companies need to do more than break even to survive in the long run”.

  Bad debts-bankruptcy and loans

In 2010, Grace loaned her friend Paula $12,000 to invest in various stocks. Paula signed a note to repay the principal with interest.

  What is the value of this portfolio of us savings bonds

Each holiday season, Michael received a U.S. savings bond from his grandmother. Michael has eventually received twelve savings bonds. The bonds vary in their rates of interest and their face value. Assume that today is December 31, 2011. What is the ..

  How does technology create global opportunity

Would the globalization of production and markets have been possible without these technological changes? How does technology create global opportunity?

  The author''s intended audience

Find an article regarding how an employee's compensation can influence his/her behavior on the job. After reading the article you will compose an article critique. Your critique will be at least two pages in length, and in the critique, you will incl..

  What would the approximate price of a stock be

What would the approximate price of a stock be if an average investor requires a return of 14% for an average stock, junk bonds are yielding 22% and 3 month T-Bills are yielding just 4.5%.

  Find company cost of common equity

Firm x has a target capital structure of 40% debt and 60 percent common equity, with no preferred stock. The yield to maturity on the firm's outstanding bonds is 9.96%.

  What is his equity at the end of year three

Armando is buying a car that costs $30,000.00 He is using a 10% down payment, and financing the remainder at 6.9% interest for 7 years. The car value drops 30% the first year, and 20% each year after.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd