Which of the Following Is True

question 4

Multiple Choice

Which of the following is true

• A) GARCH (1,1) will always give a maximum likelihood at least as high as EWMA
• B) EWMA will always give a maximum likelihood at least as high as GARCH (1,1)
• C) The maximum likelihood is the same for GARCH (1,1) and EWMA
• D) Sometimes A is true and sometimes B is true.

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Definitions:

Financial Performance

Refers to the measure of how well a firm is using its assets to generate earnings.

Corporate Social Responsibility

A business model in which companies integrate social and environmental concerns in their operations and interactions with stakeholders.

Shareholders

Individuals or entities that own shares in a corporation, giving them a stake in the company's assets and sometimes influence over its management.

Ethical Role Models

Individuals who exhibit high moral standards and ethical behavior, serving as examples for others to emulate.