The parameters of a GARCH(1, 1) model are estimated as w= 0.000004, = 0.05, and B=0.92. What is the long-run average volatility and what is the equation describing the way that the variance rate reverts to its long-run average? If the current volatility is 20% per year, what is the expected volatility in 20 days?

AppendixLO1