Question 4 a) What is meant by volatility clusters? Describe a test that can be used to verify the existence of volatility clusters. (5 marks) The GARCH (1, 1) model can be expressed: 072 = w + at-1? + Bot-12 where &t|lt-1~N(0,0%) and a, and w are constants b) Explain what is indicated by: i. A high value for B ii. A high value for a iii. A high value for a+B (5 marks) c) Basel III introduces macroeconomic and microeconomic measures to address key issues in risk management that became apparent in the 2007-2009 financial crisis. Identify and discuss five key measures introduced