Consider the daily log returns of Apple stock and the log returns of Bank of America Merrill Lynch U.S. Corp AAA Index Value from January 3, 2001 to September 30, 2011. The bond index has more daily observations, but we match the dates before computing the daily log returns of bond index. The data are in d-aaplibnd-0111.txt. Consider a long position of \(\$ 1\) million consisting of 50-50 on stock and AAA bond. Compute VaR and ES of the position for the next trading day using the following methods:

(a) The RiskMetrics method.

(b) The econometric approach using Gaussian \(\operatorname{GARCH}(1,1)\) model.