Answer Happy

Question 6 Estimation of Parameters in GARCH(1,1) Model for APPLE between 1st March, 2022, and 31st March, 2022. Calculate the last three days' daily return of February. (daily return of 24, 25, and 28 February) The volatility on the day of 28th February is square of the daily return on the day of 25th February, 2022 The initial values of omega, alpha and beta are 0.000003, 0.02 and 0.9 respectively. a) What is the daily return of the day of 10th March, 2022? 0 0 b) What is the volatility of the day of 14th March, 2022? 0 0 0 0 0 c) What is the Likelihood of the day of 16th March, 2022? Run the solver to find the parameters d) is the beta greater than one after using the solver? (1) Yes /(2) No e) Is the GARCH(1,1) model good to be used? (1) Yes/(2) No Use same setting to run EWMA model for the APPLE with the initial lambda 0.3 f) What is the volatility of the day of 14th March, 2022? 0.00 0 Run the solver to find the parameters g) Is the EWMA model good to be used? (1) Yes/(2) No