Question: 5 Collect data from Datastream to test for GARCH phenomena, using the following time series: (a) foreign exchange rates of selected industrialised nations and developing

5 Collect data from Datastream to test for GARCH phenomena, using the following time series:

(a) foreign exchange rates of selected industrialised nations and developing economies vis-à-vis the US$, taking the log or log difference transformation if necessary prior to the test,

(b) CPI of the UK, US, Japan, China, Russia, and Brazil, taking any necessary transformation prior to the test,

(c) total return series of IBM, Microsoft, Sage, Motorola, Intel, Vodafone, and Telefonica, taking any necessary transformation prior to the test.

What do you find of their characteristics?

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