1. Suppose that the price of stock X at close of trading yesterday was $100 and its volatility was estimated as 1.5% per day. The price of X at the close of trading today is $97. Suppose further that the price of Asset Y at the close of trading yesterday was $40, its volatility was estimated as 1% per day, and its correlation with X was estimated as 0.5. The price of Y at the close of trading today is unchanged. Update the volatility of X and Y and the correlation between X and Y using
   1. The EWMA model with = 0.94.
   2. The GARCH(1,1) model with w = 0.000002, a = 0.04, and b = 0.94.