Question: Question 2 (5 points) The estimated GARCH volatility model parameters and t-statistics are given below. Volatility Prediction for today is 20%. If the stock falls

Question 2 (5 points) The estimated GARCH volatility model parameters and t-statistics are given below. Volatility Prediction for today is 20%. If the stock falls by 2% today, what will be forecast for volatility next day? Parameter Estimates param t-stat @ 0.0000255 14.10 a 0.053 27.12 B 0.940 505.68 plain excel sheet.xlsx 22.2% 32.1% 308% 1.4%

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