1. What causes volatility? Explain the basic assumption and research supported view. 2. What does normal distribution mean and whether it applies to most of the market variables? Explain. 3. What assumption underlies the GARCH model in regard to volatility? 4. The volatility of an asset is 3% per day. What is the standard deviation of the percentage price change in 2 days? 5. Suppose that GARCH(1,1) parameters have been estimated as = 0.000003, a = 0.04, and B = 0.94. The current daily volatility is estimated to be 1%. Estimate the daily volatility in 30 days. 6. Suppose that the price of an asset at close of trading yesterday was $300 and its volatility was estimated as 1.3% per day. The price at the close of trading today is $298. Update the volatility estimate using (a) The EWMA model with I = 0.94 (b) The GARCH(1,1) model with o = 0.000002, a = 0.04, and B = 0.94. 7. Suppose that the parameters in a GARCH(1,1) model are a = 0.03, b= 0.95 and w = 0.000002. (a) What is the long-run average volatility? (b) If the current volatility is 1.5% per day, what is

The monthly sales for yazici​ batteries, inc., were as​ follows: month jan feb mar apr may jun jul aug sept oct nov dec sales 19 20 17 12 11 18 16 17 19 22 21 24 this exercise contains only parts b and c. ​b) the forecast for the next month​ (jan) using the naive method​ = nothing sales ​(round your response to a whole​ number). the forecast for the next period​ (jan) using a​ 3-month moving average approach​ = nothing sales ​(round your response to two decimal​ places). the forecast for the next period​ (jan) using a​ 6-month weighted average with weights of 0.10​, 0.10​, 0.10​, 0.20​, 0.20​, and 0.30​, where the heaviest weights are applied to the most recent month​ = nothing sales ​(round your response to one decimal​ place). using exponential smoothing with alpha ​= 0.40 and a september forecast of 21.00​, the forecast for the next period​ (jan) = nothing sales ​(round your response to two decimal​ places). using a method of trend​ projection, the forecast for the next month​ (jan) = nothing sales ​(round your response to two decimal​ places). ​c) the method that can be used for making a forecast for the month of march is ▾ a 3-month moving average a 6-month weighted moving average exponential smoothing the naive method a trend projection .

When the federal reserve buys and sells bonds to member banks, it is called a. monetary policy b. reserve ratio c. interest rate adjustment d. open market operations

Budget in this final week, you will develop a proposed budget of $150,000 for the first year of the program and complete the final concept paper for the proposed program due for senior management review. the budget should identify the program's anticipated expenses for the year ahead. budget line items should be consistent with the proposed program and staffing plan. using the readings for the week, the south university online library, and the internet, complete the following tasks: create a proposed budget of $150,000 for the first year of the proposed program including the cost for personnel, supplies, education materials, marketing costs, and so on in a microsoft excel spreadsheet. you may transfer your budget to your report. justify the cost for each item of the proposed budget in a budget narrative.