Question: EF4822 Financial Econometrics Problem Set 2 Due: Right before the class next week. Please submit hard copies in groups and write down the names and

EF4822 Financial Econometrics Problem Set 2 Due: Right before the class next week. Please submit hard copies in groups and write down the names and EID of all group members. If R programming is used, please show the R commands. 1. Suppose that the simple return of a stock follows the model rt = 0.1 + at 0.5at2, where {at}Tt=1 follows a white noise process with mean zero and variance 2a = 0.04. Please compute the following: (a). What is the mean of rt? (b). What is the variance of rt

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