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

Question 5

Multiple Choice

The parameters in a GARCH (1,1) model are: omega =0.000002,alpha = 0.04,and beta = 0.95.Which of the following is the closest to the long run average volatility?


A) 1.1%
B) 1.2%
C) 1.3%
D) 1.4%

Correct Answer:

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