GARCH model with rational errors outperforms standard model for stock prices.
The researchers studied a new way to predict stock price changes using a mathematical model called GARCH. They tested this model on data from the Tokyo Stock Exchange and found that it performed better than the traditional model. By using a different type of error distribution, they were able to make more accurate predictions about stock market volatility. This new model could be a useful tool for investors and analysts looking to understand and predict stock market movements.