Question: 1. Using the attached data on the VIII and SPY. a] Plot the V1}! and annualized GJR-GMCH 1ilrolalii'rties tao see whether there is a bias.

1. Using the attached data on the VIII and SPY. a] Plot the V1}! and annualized GJR-GMCH 1ilrolalii'rties tao see whether there is a bias. What are two explanations for this bias? h] Plot the histogram of the bias. 1What is the interpretation of the mean? c] Find the correlation between the log changes in FIX and the log changes in SPE. d] Describe whether this is consistent with an Asymmetric 1'ur'olatilitjr modeL e] Describe whether this correlation violates the Efcient Market Hypothesis. f] Regress SPY returns on lagged Vi}! squared. Assume the errors are CIR-MECH. What is the interpretation ofthis regression

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