What is the advantage of GARCH, BS model, and Stochastic process
Tags
When answering this question, aim to provide a succinct yet comprehensive overview of the advantages of each model or process: garch (generalized autoregressive conditional heteroskedasticity), black-scholes (bs) model, and stochastic processes. For garch, you might discuss its ability to model volatility clustering in financial markets. For the black-scholes model, you could focus on its widespread use in options pricing. When talking about stochastic processes, you may highlight their utility in modeling the randomness in various systems such as stock prices or interest rates. Make sure to include real-world applications or scenarios where each would be most useful. Your goal is to demonstrate your deep understanding of these complex financial tools and their practical applications.
Companies Asking this quesiton.
Hard Difficulty
Hard questions require advanced understanding and critical thinking. Here, your problem-solving skills are key, as these questions often involve complex scenarios needing in-depth analysis and well-structured responses.
Technical question
Technical questions probe into your industry-specific knowledge and skills. They require precise answers and are an opportunity to show your expertise and practical abilities in your field.