Explain the term TGARCH as of the GARCHs family
Explain the term TGARCH as of the GARCH’s family. Answer: TGARCH: It is threshold GARCH. This is the same to GARCH but includes an extra term that kicks in while the shock is negative. This provides a realistic asymmetry to the volatility model.
Explain the term TGARCH as of the GARCH’s family.
Answer:
TGARCH: It is threshold GARCH. This is the same to GARCH but includes an extra term that kicks in while the shock is negative. This provides a realistic asymmetry to the volatility model.
Explain why we measure a project’s risk as the change in the CV.
B. Show how Kareem's WACC would change if the tax rate dropped to 25 percent and the estimated cost of equity capital were based on a risk-free rate of 7 percent, a market risk premium of 8 percent, and a systematic risk measure or beta of 2.0.
Explain in brief the difference between financial risk and business risk?
Which ratios the bankers are most interested in while considering whether to grant a short-term business loan?
Explain the interpolation techniques.
How is volatility associated to the standard deviation of the underlying’ return?
Explain parallel loan ?A parallel loan involves four parties. One MNC borrows & re-lends to another's subsidiary and vice versa.
How must you hedge discretely?
$100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________.
Illustrates an example of probabilities in a simple coin-tossing experiment.
18,76,764
1931216 Asked
3,689
Active Tutors
1435623
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!