The GLS estimator A) is always the more efficient estimator ...

[leo leo]

The GLS estimator
 
  A) is always the more efficient estimator when compared to OLS.
  B) is the OLS estimator of the coefficients in a transformed model, where the errors of the transformed model satisfy the Gauss-Markov conditions.
  C) cannot handle binary variables, since some of the transformations require division by one of the regressors.
  D) produces identical estimates for the coefficients, but different standard errors.

Question 2

ARCH and GARCH models are estimated using the
 
  A) OLS estimation method.
  B) the method of maximum likelihood.
  C) DOLS estimation method.
  D) VAR specification.

[bobsmith]

Answer to Question 1

Answer: B

Answer to Question 2

Answer: B