Consider the following two ARMA(1,1) processes: z1(t) = 0.75 z1(t-1) + epsilon(t) + 0.25 epsilon(t-1) z1(t) = 0.25 z1(t-1) + epsilon(t) + 0.75 epsilon(t-1) Which of the two is more persistent and why? Which of the two is more volatile and why?

Consider the following two ARMA(1,1) processes: z1(t)=0.75z1(t1)+ epsilon( t)+0.25 epsilon(t-1) z1(t)=0.25z1(t1)+ epsilon( t)+0.75 epsilon(t-1) Which of the two is more persistent and why? Which of the two is more volatile and why