please answer all questions

The researcher also estimated an ARMA(1,1) - GARCH(1,1) in Mean model and obtained the following results: re = 0.25 +0.39r-1 +0.94u-1 +0.9607 + ut o2 = 0.39 + 0.08u1-1 + 0.9207-1 The log-likelihood was 720.5 (0) Is there a trade-off between risk and return in this model? Explain your answer fully. (2 marks) (ii) will the forecasts of the conditional variance of r, converge to a finite number as the forecast horizon increases? Justify your answer. (1 mark) (iii) The log-likelihood here is larger (720.5 versus 718.2). Is this to be expected? Justify your answer. (1 mark) (iv) Conduct a statistical test to determine which of the two models is better supported by the data. Be sure to state the null and alternative hypotheses, calculate the test statistic and report the 5% critical value and state your conclusion. (3 marks) The researcher also estimated an ARMA(1,1) - GARCH(1,1) in Mean model and obtained the following results: re = 0.25 +0.39r-1 +0.94u-1 +0.9607 + ut o2 = 0.39 + 0.08u1-1 + 0.9207-1 The log-likelihood was 720.5 (0) Is there a trade-off between risk and return in this model? Explain your answer fully. (2 marks) (ii) will the forecasts of the conditional variance of r, converge to a finite number as the forecast horizon increases? Justify your answer. (1 mark) (iii) The log-likelihood here is larger (720.5 versus 718.2). Is this to be expected? Justify your answer. (1 mark) (iv) Conduct a statistical test to determine which of the two models is better supported by the data. Be sure to state the null and alternative hypotheses, calculate the test statistic and report the 5% critical value and state your conclusion