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I need assist solving the following complex question thankyou Question 14 Explain the Matlab code below. In particular: 1. Indicate in which context this code

I need assist solving the following complex question thankyou

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Question 14 Explain the Matlab code below. In particular: 1. Indicate in which context this code is used. 2. Indicate which measure the variables x1 and x2 contain at the end of the program. 3. In general, would you expect x1 to be bigger or smaller than x2 and why? % FireLosses is a vector containing the accident % losses over 300 000 Danish Krone (DKK) , % from the years 1980 to 1990 mu=mean (FireLosses) ; sigma=std (FireLosses) ; z_99-norminv (. 99,0,1); x1=mu+sigma*z_99 guess=x1; x2=fminsearch (@(x) obj_fet (x, FireLosses) ,guess) function f=obj_fet (x,z) alpha=. 01; h=std(z)*length(z) - (-.2); f=(mean (normedf ((z-x)/h))-alpha) *2; endQuestion 13 Suppose that the weekly log-returns ne of the IBM stock can be modeled with the following AR(1)-GARCH(1,1) model: of=W+ a_1 + 807-1, w>0. a,820, and 1>a+8. where z, is a gaussian white noise (z ~ W(0, 1)). Jp|

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