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

question 16

Multiple Choice

The parameters in a GARCH (1,1) model are: omega =0.000002,alpha = 0.04,and beta = 0.95.The current estimate of the volatility level is 1% per day.What is the expected volatility in 20 days?

• A) 1.09%
• B) 1.10%
• C) 1.11%
• D) 1.12%

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Selling Shares

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Dutch Auction

A bidding strategy where the auctioneer starts with a high asking price which is lowered until some participant is willing to accept the auctioneer's price.

Selling Shares

The act of disposing of ownership in a company by selling stock in exchange for cash or other compensation.

Subscription Price

The cost that investors pay to acquire securities during an offering before they are available on the open market.