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Which of the Following Is True About ARCH and GARCH

Question 7

Multiple Choice

Which of the following is true about ARCH and GARCH models?
(I) They are used for modelling and forecasting volatility
(II) They are non-linear models
(III) They can both be estimated using OLS
(IV) Series estimated using these models must have a unit root process


A) I only
B) I and II only
C) I, II and III only
D) I, II, III and IV

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