Suppose that the daily log return of a security follows the model, It = 0.01 +...

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Suppose that the daily log return of a security follows the model, It = 0.01 + 0.2r-2 + Et (2) where e, is a Gaussian white noise series with mean zero and variance 0.02. What are the mean and variance of the series r, ? Compute the lag-1 and lag-2 autocorrelations of at 5 points] Suppose that the daily log return of a security follows the model, It = 0.01 + 0.2r-2 + Et (2) where e, is a Gaussian white noise series with mean zero and variance 0.02. What are the mean and variance of the series r, ? Compute the lag-1 and lag-2 autocorrelations of at 5 points]