Explain volatility clustering

Assignment Help Financial Management

Reference no: EM131013729

1. Explain Volatility Clustering

2. Identify any two that can explain non-linear dynamics in financial time series.(stock prices, interest rates, foreign exchange rates, and inflation rates)

3. Correct specification of a regression model requires that we determine the regressors, the functional form, and the stochastic error. What is informed the choice of functional form in building financial models?

4. Explain three functional form specifications in empirical analysis.

Reference no: EM131013729

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