A) What stylised facts characterise daily data on financial rates of return? [2 points] B) Consider the Normal GARCH(1,1) model: rt - u = Et = Utot of = ao + a1cz_1 + b102_1 where Ut ~ N (0,1) is independently and identically distributed over time; ajand Ajare both strictly greater than 0; by is greater than or equal to 0; and au + b1