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We introduce the notion of continuously invertible volatility models that relies on some Lyapunov condition and some regularity condition.
An Markov chain Monte Carlo simulation method based on a two stage delayed rejection Metropolis-Hastings algorithm is proposed to estimate a factor multivariate stochastic volatility model. The firs...
The Extended Generalized Inverse Gaussian Distribution for Log-Linear and Stochastic Volatility Models
This paper deals with the filtering problem for a class of discrete time stochastic volatility models in which the disturbances have rational probability density functions. This includes the Cauchy ...
The Sharpe ratio, which is defined as the ratio of the excess expected return of an investment to its standard deviation, has been widely cited in the financial literature by researchers and practit...
Correlations between asset returns are important in many financial applications. In recent years, multivariate volatility models have been used to describe the time-varying feature of the correlatio...

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