Question: Build a stochastic volatility model for the daily log return of Cisco Systems stock from January 1991 to December 1999. You may download the data

Build a stochastic volatility model for the daily log return of Cisco Systems stock from January 1991 to December 1999. You may download the data from CRSP database or the file "d-csco9199.dat." Use the model to obtain a predictive distribution for 1-step ahead volatility forecast at the forecast origin December 1999. Finally, use the predictive distribution to compute the Value at Risk of a long position worth $\$ 1$ million with probability 0.01 for the next trading day.

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