Suppose that r1,,rn are observations of a return series that follows the AR(1)GARCH(1,1) model where t is

Suppose that r1,…,rn are observations of a return series that follows the AR(1)–GARCH(1,1) model

where εt is a standard Gaussian white noise series. Derive the conditional log likelihood function of the data.

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r = l + $1;1 +, a = 0 = a + + 10% -1,