Question 2 (a). Define a GJR-GARCH(1,1) model. Would this model be preferred to a GARCH (1,1) to explain the dynamics of financial returns time series? Explain your answer. (8 Marks) (b). Define an E-GARCH(1,1) model. Provide an interpretation of the coefficients in the E-GARCH(1,1). How different this model to a GJR-GARCH(1,1) in part (a). (9 Marks) (c). Define Value-at-Risk (VaR). Why has this measure been so successful for risk management and regulatory purposes? Explain how you would calculate a 1-step- ahead 5% VaR. (8 Marks) (Total: 25 Marks)