CME: discuss methods of forecasting volatility

LOS g.discuss methods of forecasting volatility

Please tell me we only need to know the differences between the 2 variance-covariance matrix methods (sample vs factor), the advantages and limits of each.

When I see those variance, covariance equations, I get scared (and I majored in maths, but hated stats).

What sort of maths did you not hate?

Personally, I like algebraic topology.

the book im using only mentions ARCH, GARCH, Merton jump model, Constant Elasticity of Variance, and Heston model. the last three is apparently a generalization of Black-Scholes (they each relax certain assumptions from Black-Scholes). fascinating stuff. hoping to one day understand those models.