Define feature of co-integration for dynamic relationship

Define one feature of co-integration for dynamic relationship?

E

Expert

Verified

The other feature of co-integration is Granger causality that is where one variable leads and other lags. This is of assist in explaining that why there is any dynamic relationship among several financial quantities.

   Related Questions in Financial Management

  • Q : Describe the three major trend in

    Describe the three major trends which have prevailed in international business at the time the last two decades.The 1980s brought a quick integration of international capital & financial markets. Impetus for globalized financial markets prim

  • Q : Why is structural approach to modelling

    Why is structural approach to modelling risk of default born?

  • Q : Time value of money You are trying to

    You are trying to save to buy a new $150,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5% annual interest rate on its accounts. How long will it be before you have enough to buy the car?

  • Q : Zero-coupon bond issues The discussion

    The discussion of zero-coupon bonds in the text gave an instance of two zero-coupon bonds issued through Commerzbank.  The DM300, 000,000 issues due in the year of 1995 sold at 50 percent of face value and the DM300, 000,000 due in the year of 2000 sold a

  • Q : Why we measure a projects risk Explain

    Explain why we measure a project’s risk as the change in the CV.

  • Q : What is excess return What is excess

    What is excess return?

  • Q : Foreign exchange transactions among

    How are foreign exchange transactions among international banks settled?The interbank market is network of correspondent banking relationships, along with large commercial banks maintaining demand deposit accounts along with one another, known a

  • Q : Dual-Currency Bonds What should a

    What should a borrower consider before issuing dual-currency bonds? What should an investor consider before investing in dual-currency bonds?

  • Q : Question on nominal rate Suppose a

    Suppose a currency swap wherein two counterparties of comparable credit risk each borrow at the best rate obtainable, yet the nominal rate of one counterparty is greater than the other. After the primary principal exchange, is the counterparty i.e. required t

  • Q : What will happen when a bank gives

    What will happen when a bank gives discount interest on a loan?

©TutorsGlobe All rights reserved 2022-2023.