Economics Homework Help

Economics Homework Help. 650 words

 

ARCH/GARCH models in Finance

1. Explain the relevance of ARCH/GARCH models in Finance

2. Explain and illustrate with appropriate models and testt procedures the

following:

(i) the presence or absence of ARCH in stock return

(ii) potentially asymmetric effects of different types of shocks (news) on

conditional return volatility

Economics Homework Help