Question: Explain what is meant, by an Ito process. Explain why an ho process is more applicable to describing stochastic processes underlying asset prices as compared

Explain what is meant, by an Ito process. Explain why an ho process is more applicable to describing stochastic processes underlying asset prices as compared to either the basic Wiener process or the generalized Wiener process. Define and explain dearly ARCH and GARCH effects. What is the: most, common type of GARCH model used in practice? Briefly outline sonic extensions to the GARCH model

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