Which of the Following Is True

question 7

Multiple Choice

Which of the following is true

• A) EWMA is a particular case of GARCH (1,1) where the reversion rate is zero
• B) EWMA has a lower reversion rate than GARCH (1,1), but it is not zero
• C) EWMA has a higher reversion rate than GARCH (1,1)
• D) Sometimes EWMA has a higher reversion rate than GARCH (1,1) and sometimes it has a lower reversion rate than GARCH (1,1).

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Definitions:

Labor Market

The supply of available workers in relation to available employment.

Product Market

The marketplace where final goods or services are traded between sellers and consumers.

Financialization

The process by which financial markets, financial institutions, and financial elites gain a greater influence over economic policy and economic outcomes.

Labor Relations

The study and practice of managing the relationships between employers and their workforce, including the negotiation of collective bargaining agreements and handling of disputes.