Please answer question 1-3

Question 1 1 pts Choose a correct statement about risk management O Risk management helps the firm to assume appropriate market risk O Risk management helps the firm to assume appropriate business risk O Risk management helps the firm to assume appropriate nonbusiness risk O Risk management helps the firm to assume appropriate liquidity risk Question 2 1 pts Consider the GARCH (1,1) model given by of = w tau,, + Bo? "n 1 , with parameter values w = 0.0000065 = 6.5 . 10 0, B = 0.96 . Suppose the long-run average variance rate is 0.0004. What is the value of or ? Use 3 decimal places for your answer. Question 3 1 pts Consider two random variables, Vi and V2 . The probability that Vi is below 1 is equal to 0.4. The probability that V2 is below 1 equals 0.25. Suppose we model the dependence between V1 and V/2 with a Gaussian copula with correlation 0.5. What is the joint probability that both V1 and V2 are below 1? Use 3 decimal places for your