Show that the GARCH (1,1) model in equation (23.9) is equivalent to the stochastic volatility model where
Question:
Show that the GARCH (1,1) model 
in equation (23.9) is equivalent to the stochastic volatility model
where time is measured in days and is the square of the volatility of the asset price and
What is the stochastic volatility model when time is measure in years?
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so that The variable has a mean of and a variance of The stan...View the full answer
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