Question:
a)Discuss three stylized features of Financial data
b) Explain how the features in (a) can be modeled using linear
time series models
c)
i) Ecplain the moments of a random variable ii) How can you
estimate these in emphirical applications
d)
i) Explain the Jaque-Bera Test (JB) , stating clearly , the null
alternative hypothesis.
ii) In the case of financial data , do you agree JB test to
accept or reject the null hypothesis?Explain