A stock has a historical volatility of 39%. The data shows significantly increased volatility in recent data and significantly lower volatility in older data
The implied estimate of the unconditional volatility using the GARCH model is most likely to be which of the following?
A) 12%
B) 25%
C) 45%
D) 85%
D
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While it is powerful, simulation is not considered to be a flexible quantitative analysis tool
Indicate whether the statement is true or false
The two most fundamental aspects of a corporation (as a form of business organization) that lead to not only tremendous economies of scale and scope (as a positive) but also are linked to the
financing problems that we address in the course (as a negative) are: a. the separation of ownership and control AND private ownership. b. limited liability AND private ownership. c. the separation of ownership and control AND limited liability. d. private ownership AND leverage.