What Is the Primary Difference Between ARCH Models and GARCH

question 2

Essay

What is the primary difference between ARCH models and GARCH models?

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Definitions:

Bearing

A machine element that constrains relative motion to only the desired motion, reducing friction between moving parts.

Antifriction Bearings

A type of bearing designed to reduce friction between rotating parts by substituting sliding friction with rolling elements, such as balls or rollers.

Roller-Element Bearings

Mechanical assemblies containing rolling elements, such as balls or rollers, placed between two rings to facilitate low-friction movement between them.

Classified

Pertains to information that has been officially categorized as confidential, secret, or top secret to protect national security or sensitive data.