<t>What I feel serial autocorrelation in distant lags is not too important to consider at all. Fundamental economic theory should get more importance than those in distant lags. However Seasonality also could be worth to consider. If significant auto-correlations are there in first few lags then I f...

"A rate of 6% per annual with cont. compounding translate into 6.09% with semiannual compounding". How the figure 6.09% comes from 6%? Can anyone explain pls?

<r>I have gone through the calculation page of VIX here <URL url="http://www.cboe.com/micro/vix/vixwhite.pdf">http://www.cboe.com/micro/vix/vixwhite.pdf</URL>. However I could not understand the intuition of the formula. Why the shape of this formula is like that? Is there any paper/text-book to exp...