Imposing my own mean in VAR
Posted: Fri Jun 19, 2020 7:06 am
Hello, How can I impose my own value to which the variable in VAR reverts to? For instance, historical PE ratio is 20 but when I forecast from VAR, my view is that PE ratio will be 30. How can I make VAR revert to 30 (which is my view) instead of historical mean of 20? thank you.