  Dear all,
 
 I would like to ask about the GARCH model. I have read few articles about stock returns modelling with GARCH. I am confused about the definition of conditional variance. What does it forecast? Is it the conditional variance of the returns or the conditional variance of the returns' residuals? What is the definition and the measure of volatility in the GARCH model? 
 
 Thank you in advance
 
 Best Regards,
 
 Aditya
  
       
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