Question 3 Suppose that the daily volatilities of asset A and asset B calculated at the close of trading yesterday are \1.6 and \2.5, respectively. The prices of the assets at close of trading yesterday were R20 and R40 and the estimate of the coefficient of correlation between the returns on the two assets was 0.25 . The parameter \\( \\lambda \\) used in the exponentially weighted moving average model is 0.95 . 3.1 Calculate the current estimate of the covariance between the assets. 3.2 On the assumption that the price of the assets at close of trading today are R20.5 and R40.5 update the correlation estimate. (7)