Question: Question 24 (3 points) E ())Listen } l Consider the following GARCH(1,1) model for variance: of : 0.001 + 0.75011 + 0. 021'? 3) Why

Question 24 (3 points) E ())Listen } l Consider the following GARCH(1,1) model for variance: of : 0.001 + 0.75011 + 0. 021'? 3) Why do finance professional model volatilities as being time-varying? (1 mark) b) The coefficient on 0-31 is much greater than the coefcient on T3. What does this tell us about how volatility changes over time? (1 mark) c) What is the long-term (or unconditional) variance associated with this model? (1 mark)

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