Question: 3.14 Consider Risk Metrics' conditional volatility model for monthly returns 0,= (0.97) 01-1 + (0.03) S-12 What is today's estimate of conditional volatility given last

3.14 Consider Risk Metrics' conditional volatility model for monthly returns 0,= (0.97) 01-1 + (0.03) S-12 What is today's estimate of conditional volatility given last month's condi- tional volatility 0 -1 = 5 percent and a recent change in the spot rate of se-1 = 10 percent? 3.14 Consider Risk Metrics' conditional volatility model for monthly returns 0,= (0.97) 01-1 + (0.03) S-12 What is today's estimate of conditional volatility given last month's condi- tional volatility 0 -1 = 5 percent and a recent change in the spot rate of se-1 = 10 percent

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