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

question 15

Multiple Choice

The parameters in a GARCH (1,1) model are: omega =0.000002,alpha = 0.04,and beta = 0.95.What is the reversion rate for the variance rate implied by the model

• A) 0.5% per day
• B) 1.0% per day
• C) 1.5% per day
• D) 2.0% per day

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