Focus on the monthly log returns of IBM and HPQ stocks from January 1962 to December 2008.
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Focus on the monthly log returns of IBM and HPQ stocks from January 1962 to December 2008. Fit a \(\operatorname{DVEC}(1,1)\) model to the bivariate return series. Is the model adequate? Plot the fitted volatility series and the timevarying correlations.
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