True or False:

11. To estimate the second conditional moment of returns, we first need to specify the first conditional moment of returns.

12. Volatility is unobservable and there are various ways to estimate it.

13. Realized volatility exhibits spikes because it is an estimate of quadratic variation, which comprises smooth variation and jumps.

14. If we regress RV in month t on RV in month t-1, we will obtain an R2 of about 40%. The autoregressive coefficient will be 0.7 and highly statistically significant.

15. Bi-power variation is another way of estimating realized volatility.