This is a practical discussion

Problem and Application One typical approach to simulate volatilities of financial assets prices is to use GARCH (Generalized Autoregressive conditional Heteroskedasticity) type models to model the dynamics of the assets' prices. Answer the following TWO questions: 11) Describe the theoretical rational and stylized facts of using GARCH type models to simulate the dynamics of volatilities: 12]. If you have a S-year prices dataset of a specific stock, for example, Berkshire Hathaway (BRK.A), specify the detailed procedures of volatilities analysis, including stages from the preliminary data check to the final model estimation