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:

Investment Banking

The sale of stocks and bonds for corporations.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the central bank.