Please solve both parts

3. Suppose the estimated value of basic VAR as shown in the table E s. d. (diagonal) Estimates and correlation. b, $ r Ad dp 0.1 16-20 +big -big Ad 10-14 0 dp 0.94 15 a. Write a brief interpretation of the variance part. b. Let's plot the responses to dividend yield and dividend growth shocks. In particular, plot EdP = 1, g = 0 and hence E = -P, and then Ed = 1, gup = 0 and hence Er = 1