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Question 4: Suppose that the price of an asset at close of trading yesterday, its volatility estimate yesterday, and the price at the close of

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Question 4: Suppose that the price of an asset at close of trading yesterday, its volatility estimate yesterday, and the price at the close of trading today are as described below: Update the volatility estimate using: (a) The EWMA model with =0.94. (b) The GARCH(1,1) model with =0.000002,=0.05, and =0.93

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