Question: 2 (b) Explain how the exponentially weighted moving average model (EWMA) model may be interpreted as a special case of GARCH (1, 1) model. (7

2 (b) Explain how the exponentially weighted moving average model (EWMA)

2 (b) Explain how the exponentially weighted moving average model (EWMA) model may be interpreted as a special case of GARCH (1, 1) model. (7 Marks) 2 (b) Explain how the exponentially weighted moving average model (EWMA) model may be interpreted as a special case of GARCH (1, 1) model. (7 Marks)

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