This paper concentrates on the primary theme of THE FILE M-SPIBMGE.TXT CONTAINS THE MONTHLY LOG RETURNS IN PERCENTAGES OF THE S&P 500 INDEX, IBM… 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.
The file m-spibmge.txt contains the monthly log returns in percentages of the S&P 500 index, IBM stock, and General Electric stock from January 1926 to December 1999. The returns include dividends. Focus on the monthly log returns in percentages of GE stock and the S&P 500 index. Build a constant correlation GARCH model for the bivariate series. Check the adequacy of the fitted model, and obtain the 1-step ahead forecast of the covariance matrix at the forecast origin December 1999.