MODELS FOR SECURITY PRICE VOLATILITY: THEORETICAL BASIS AND PRACTICAL ANALYSIS

This scientific paper provides an in-depth analysis of the theoretical and practical aspects of applying GARCH (Generalized Autoregressive Conditional Heteroskedasticity) models to assess the volatility of securities prices. The study examines key characteristics of financial time series, including volatility clustering, heteroskedasticity, and asymmetric effects. The mathematical foundations of the GARCH model, the economic interpretation of its parameters, and their role in financial risk assessment are discussed. In addition, various extensions of the model and their practical applications are analyzed.