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4. Suppose that the price of an asset at close of trading yesterday was $300 and its volatility was estimated as 1.3% per day. The

4. Suppose that the price of an asset at close of trading yesterday was $300 and its volatility was estimated as 1.3% per day. The price at the close of trading today is $298. Update the volatility estimate using (i) The EWMA model with = 0.94 (ii) The GARCH(1,1) model with = 0.000002, = 0.04, and = 0.94.

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