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. Camputer Simulation. Use Matlab and the help menu (as well as any resource available) to complete the following exercise. (a) Generate a time series

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. Camputer Simulation. Use Matlab and the help menu (as well as any resource available) to complete the following exercise. (a) Generate a time series t = 1,000 draws. Plot and attach your (1) computer code and (2) output from each simulation. ii. iii . iv. . Simulate the following AR(1) process 3;; = a + byhl -l- at. 5: ~ N(0, J2), and plot it. Assume a = 10, b = 0.95 and 02 = 0.01. Now assume a = 10 and b = 0.95. How does the simulation differ from part (i)? Now assume a = 0 and b = 1 and simulate a new series. This is known as a \"random walk\" and is used to model stock data such as the S&P 500. Now assume a = 10 and b = 1. This type of series is known as a \"random walk with drift.\

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