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Asset A at the close of trading the day before yesterday and today were $102 and $107, respectively. The daily volatility was estimated as 1%

Asset A at the close of trading the day before yesterday and today were $102 and $107, respectively. The daily volatility was estimated as 1% yesterday.

What was the log return of asset A yesterday?

Consider the RiskMetrics model with = 0.94. What is the new volatility today?

Consider the Garch (1,1) model with = 0.000005, = 0.05, and = 0.90. What is the new volatility today?

Consider the GARCH (1,1) model above, what is one-day ahead 1% VaR?

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