What are the difficulties GARCH contained
What are the difficulties GARCH contained?
Expert
These difficulties can be related with:
• having inadequate data• The (log) likelihood function being extremely ‘flat’ regarding the parameters, so thence t the maximum is insensitive to the parameter values• Calculating the wrong model, including having more many parameters (the best model may be simpler than you imagine).
Why is volatility annualized standard deviation of return?
A stock whose value is now $44.75 is growing on average by 15 percent per annum. Its volatility is 22 percent. The interest rate is 4 percent. You need to value a call option along with a strike of $45, expiring in two months’ time. So, what can you do?
Give explanation: The banks try to make short-term self-liquidating loans to businesses.
Is there margin option on long positions? Explain.
What are retained earnings? Why are they important?
How are short or future option margins to be paid at credit risk?
Which is the deciding factor for rejecting or accepting proposed projects while using net present value?
If a convertible bond has a conversion ratio of 20, a coupon rate of 8 percent, a face value of $1,000 and the market price for the company’s stock is $15 per share, what is the convertible bond’s conversion value?
Staind, Inc., has 7 percent coupon bonds on the market that have 13 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 11 percent, what is the current bond price?
How are normal distributions with mean and standard deviation in a given period shown?
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