1.The most recent estimate of the daily volatility of an asset is 1.5% and the price of the asset at the close of trading yesterday was $30.00. The parameter in the EWMA model is 0.94. Suppose that the price of the asset at the close of trading today is $30.50. How will this cause the volatility to be updated by the EWMA model?

2) Suppose that GARCH(1,1) parameters have been estimated as = 0.000003, = 0.04, and = 0.94. The current daily volatility is estimated to be 1%. Estimate the daily volatility in 30 days.