Suppose that the daily simple return of a stock follows the model: rt = 0.02 + 0.3rt-1 + 0.10rt-2 + at, where {at} is a Gaussian white noise series with mean zero and variance 0.02. i) What are the mean and variance of the return series rt? ii) Compute the lag-1 autocorrelations of rt. Assume that r50 = 0.012, and r49 = -0.015. iii) Compute the 1-step ahead forecast of the return series at the forecast origin t = 50