Kizspy Question: 48
(Choose 1 answer)
How do GARCH models differ from ARCH models?
A. Some variation of GARCH models allow for leverage effect
B. GARCH models capture non-linear relationships in data, while ARCH models focus on forecasting
covariances and correlations.
C. GARCH models estimate the conditional mean and variance simultaneously, while ARCH models estimate
simple covariance models.
D. GARCH models assume symmetric volatility responses, while ARCH models capture the leverage effect.
