1) Let rt be a stationary ARCL) process with rt=1.5+0.8 rt_1+vt, where the error terms v1, V2, V3, are independent N[0,4) random variables. (i) Show that the conditional expectation E(rt | n.1, n-2,...) depends on the past values of rt while the conditional variance Var(rt| rH, n.2,...) does not depend on the past values of rt. (ii) Give the correlation between rt and r\