Question: sOLVE IN EXCEL DO NOT ADD THOERY AGAIN You have $1 million invested in a stock of your choosing. You will use CRSP to collect

sOLVE IN EXCEL DO NOT ADD THOERY AGAIN

You have $1 million invested in a stock of your choosing. You will use CRSP to collect the last available 500 days of returns (and the last closing price) on your stock as well as the CRSP value weighted index (vwretd) and use that to complete the following requirements: Using Excel: 1- Assuming EWMA for the volatility: a. Find the optimal Lambda for the stock's volatility. b. Forecast the stock's daily volatility for the next 10 days. 2- Assuming GARCH for the volatility: a. Find the optimal Omega, Alpha and Beta for the stock's volatility. b. Forecast the stock's daily volatility for the next 10 days and the total volatility over the 10-day period

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