Question: Description This assignment aims to estimate the mean equation and its volatility in time series by applying ARCH/GARCH models. Purpose To obtain both return and

Description This assignment aims to estimate the mean equation and its volatility in time series by applying ARCH/GARCH models. Purpose To obtain both return and volatility to diversify a portfolio in a financial market Instructions Please download a financial time series (stock data or S&P500 index) and calculate the return of the series. Then, estimate both the mean equation, the variance equation, and a. test the significance of the model b. test the significance of the parameters c. Test the presence of autocorrelation using DW test statistics d. What does the variance equation tell us? Make a graph of the variance series and comment on it

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