LR ratio in (8.4) page 154 Financial risk forecasting errata

LR ratio in (8.4) page 154

June 5, 2012

My FM320 student, Bide Liu, spotted that the LR test in (8.4) has the wrong order in the first line. Should be unrestricted - the restricted, i.e. something like $L R = 2 (\log L_{U} (\hat{p}) - \log L_{R} (p))$

p_{i j}

and

p_{j i}

bottom of page 155

4 and 20 on page 96

Financial Risk Forecasting

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