II. Module 3 Homework 2 [practice]: Variance Decomposition
- Due No due date
- Points 10
- Questions 9
- Time Limit None
- Allowed Attempts 2
Instructions
This homework builds on the VAR homework. I wanted you to do that one and make sure you got it right before going on.
Now, let's answer the question "how much of the variance of prices, returns, etc. comes from discount rate shocks and how much comes from return shocks?"