Question

How to calculate volatility from the garch model in eviews?

Answer 1

Answer:

If you choose the GARCH/TARCH model, you may restrict the parameters of the GARCH model in two ways. One option is to set the Restrictions dropdown to IGARCH, which restricts the persistent parameters to sum up to one. Another is Variance Target, which restricts the constant term to a function of the GARCH parameters and the unconditional variance:

(26.13)

where is the unconditional variance of the residuals.

Answer 2

Explanation:

Explanation:

First, volatility receives a great deal of concern from policy makers and financial market participants because it can be used as a measurement of risk. ... Result shows that, GARCH(1,1) is the best than other GARCH(p,q) models in modeling volatility for the daily return series of DSE.