Which of the following is correct for an unrestricted VAR with contemporaneous correlation in the errors?

Which of the following is correct regarding using BIC to select orders for  ARMA-GARCH and VAR models?

Which of the following correctly describes deterministic covariates in a VARX(pp)?

Which statement correctly describes the ARCH model’s variance structure?

Which statements accurately characterize why heteroskedasticity models (ARCH/GARCH) are introduced for certain time series?

Which of the following is correct about incorporating volatility clustering into an ARMA residual process?

Which of the following best describes how univariate AR(pp) causality relates to stability in the VAR(pp)?

Which are valid features or requirements of a Structural VAR?

Which statements reflect important conditions or implications for a stationary multivariate time series?

Part A: MC Questions (13 Points)