Explain econometric models
Explain econometric models.
Expert
Econometric models: These models use different forms of time series analysis to estimate future and current expected actual volatility. They are classically based on several regression of volatility against past returns and they may include autoregressive or moving-average components. In such category are the GARCH types of models. But one models the square of volatility and the variance, and sometimes one uses high-low-open-close data and not only closing prices, as well as sometimes one models the logarithm of volatility. The concluding seems to be quite promising since there is evidence as actual volatility is lognormally distributed. Another work in this area decomposes the volatility of a stock in components, industry volatility, market volatility and firm-specific volatility. It is similar to CAPM for returns.
What is MCC (marginal cost of capital schedule)? The schedule is always a horizontal line. Elaborate.
Explain the effect of a change in the discount rate on present value.
What is the function of sinking fund in the retirement of an outstanding bond issue?
Grecian Tile Manufacturing of Athens, Georgia borrows $1,500,000 at LIBOR and a lending margin of 1.25 percent per annum on six-month rollover basis through London bank. If six-month LIBOR is 4 ½ percent in the first six-month interval and 5 3/8 percent over the second six-mo
Within win32 application when defining a variable of CString then this provides the error "CString:Undeclared identifier" so how to solve the problems? What headerfile require including?
You are an investment banker advising a Eurobank regarding a new international bond offering it is considering. The proceeds are to be utilized to fund Eurodollar loans to bank clients. What sort of bond instrument would you suggested that the bank consi
venture capital valuation method a venture capitalist wants to estimate the value of a new venture. the venture is not expected to produce net income or earnings until the end of year 5 when the net income is estimated at 1,600,000.00. A publicly traded competitor or comparable firm has current ea
How is a portfolio optimized for the greatest expected return in a prescribed risk level?
What is an option price?
Illustrates an example of LIBOR Market Model?
18,76,764
1926722 Asked
3,689
Active Tutors
1444752
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!