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5. The following chart displays volatility (VIX index) over the 1990-2019 period. The shaded areas represent recession as determined by National Bureau of Economic Research.

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5. The following chart displays volatility (VIX index) over the 1990-2019 period. The shaded areas represent recession as determined by National Bureau of Economic Research. a. Use this graph to list the most prominent time-series properties of volatility. b. Write the equation for GARCH (1,1) model and interpret its parameters. RED -CBOE Volatility Index VIX Index "Where are and www where we men 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 5. The following chart displays volatility (VIX index) over the 1990-2019 period. The shaded areas represent recession as determined by National Bureau of Economic Research. a. Use this graph to list the most prominent time-series properties of volatility. b. Write the equation for GARCH (1,1) model and interpret its parameters. RED -CBOE Volatility Index VIX Index "Where are and www where we men 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

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