This paper concentrates on the primary theme of FOCUS ON THE MONTHLY LOG RETURNS IN PERCENTAGES OF GE STOCK AND THE S&P 500 INDEX. BUILD A… in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
Focus on the monthly log returns in percentages of GE stock and the S&P 500 index. Build a time-varying correlation GARCH model for the bivariate series using a logistic function for the correlation coefficient. Check the adequacy of the fitted model, and obtain the 1-step ahead forecast of the covariance matrix at the forecast origin December 1999.