The Parameters in a GARCH (1,1)model Are: Omega =0

question 5

Multiple Choice

The parameters in a GARCH (1,1) model are: omega =0.000002,alpha = 0.04,and beta = 0.95.Which of the following is the closest to the long run average volatility?

• A) 1.1%
• B) 1.2%
• C) 1.3%
• D) 1.4%

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Definitions:

Differential Association

A theory suggesting that individuals learn criminal behavior through their interactions and communications with others involved in crime.

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Physical punishment, such as spanking or caning, used to discipline an individual, typically a child.

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The process of creating a unique image, name, and identity for a product or service in the consumer's mind.

Amputation

The surgical removal of a body part, typically a limb or extremity, due to injury, disease, or surgery.