Consider the following MA(1) - TGARCH-in-Mean model for equity returns.rt = 0.5 +0.20 +0.3ut-1 + ut= 0.8 + 0.2u²_₁ + 0.70²-₁ + 0.4u²-1lt-1Given that you observe ut-1 = 0.5 and ot-1 = 0.4, the optimal forecast of the equity return for time t(i.e. for rt) is:Select one:a. 0.8624b. 1.0620c. 0.9620d. None of these.e. 0.8424

Answered: +0.3ut-1 + Ut 2u²_₁ + 0.70²_₁ +…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

The APR for loans can also be approximated (however, not within the 1 4 of 1% accuracy required by Regulation Z†) by using the following formula: APR = 2mI P(n + 1) where m = the number of payment periods per year I = the interest (or finance charge) P = the principal (amount financed) n = the number of periodic payments to be made. Thus, if m = 12, I = $264, P = $1200 and n = 30, APR = 2mI P(n + 1) = 2 × 12 × 264 1200 × 31 = 17%. Use the APR formula to find the APR to one decimal place. (Assume m = 12.) AmountFinanced FinanceCharge Number ofPayments $4000 $332 12 %State the difference between the answer obtained by the formula and the answer obtained using the True Annual Interest Rate (APR) table. (Round your answer to one decimal place.) %
An annuity is known as a fixed-term pension and gives a person a guaranteed income for a number of years in future. A person can use his/her savings to buy an annuity from a superannuation fund or life insurance company. S We consider an annuity of a $25,000 for n = 10 years in future, and the present value of the 10-year annuity scheme is p(r) = (¹ - (,)"). wherer is the discount rate. (1) Calculate the present value p(r) when r = 1.25%. (2) Use the following first-order approximation to approximate the present value if the discount rate is increased by 0.25% (that means the discount rate is now 1.5%): p(r) p(ro) + p'(ro) x (r-ro). where r= 1.5% and ro 1.25%. Sel
Prove that the accumulation function associated with the force of interest satisfies the principle of consistency.
LA PLUACE TAANSFORM of ' %3D FIHO THE IHVERSE S-3 52+9
Suppose that JB Cos. has a capital structure of 78 percent equity, 22 percent debt, and that its before-tax cost of debt is 13 percent while its cost of equity is 17 percent. Assume the appropriate weighted-average tax rate is 21 percent and JB estimates that they can make full use of the interest tax shield. What will be JB's WACC? (Round your answer to 2 decimal places.
Why would a company issue 100-year bond or hold 100-year debt as both CN and CP do? O Investors might view the ultra-long duration as a way to lock-in to a long-term positive return, even if a small one. O Issuing ultra-long debt may allow companies to 'lock-in' interest rates while they are at low levels. O All of the above may lead a company to consider and issue what's been termed 'century bonds' or 100 year bonds. O Such a lengthy term can instill confidence in the bond market that the company will be around for another century.
Please don't provide handwritten solution ....
Please answer 20a and 20b
Assn #3 Pg 13 (1-10) And Works x em/?file=https://drive.google.com/uc?id%3D1CTEVTWK8MB4C_mgM7cZiHsSSPeOAZ 10&export%3Ddownload&filename%3DAttachment:%20PDF:%2 9. The balance in a bank account with an annual interest rate of 2%, compounded annually, can be represented using the function f(t) = 1000(1.02), where t is the time in years after opening the %3D 1 account. What was the approximate account balance 6 years and 3 months, or 6- years, after 4 the account was opened?
4. An insurer issues a 15-year annual premium-due endowment insurance of $100,000 benefit to life (50). The insurer charges an initial expenses of $ 1000 plus renewal expenses of 5% of each subsequent premium after the first premium payment. The premiums are made at the beginning of each year when (50) remains alive before reaching 70 and the benefit is paid at the end of K50 +1 years or when the person reaches the age 70 whichever occurs earlier. (a) Write down the gross future loss random variable L in terms of actuarial notations. (b) Calculate the gross premium-due G by using the Standard Select Survival Model with 5 % per year interest (Table D4) and the equivalence premium principle. 8 (c) Calculate the gross premium policy value V by using the equivalence premium G found in (b).
Please answer this question

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

Elementary Statistics: Picturing the World (7th E…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

The Basic Practice of Statistics

Statistics

ISBN:

9781319042578

Author:

David S. Moore, William I. Notz, Michael A. Fligner

Publisher:

W. H. Freeman

Introduction to the Practice of Statistics

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS

+0.3ut-1 + Ut 2u²_₁ + 0.70²_₁ + 0.4u²-1lt-1 erve U₁-1 = 0.5 and ot₁-1 = 0.4, the optimal forecast of the equity return for se.