This is about financial time series. Please write down in details. Thanks.

6. Consider the MA model Ct = 10+ w+ +0.5wt-1 where wt is a sequence of independent normal random variables with mean zero and variance 2. Assume that X100 10 and W100 (a) Compute the forecast of X101 at the forecast origin t = 100. (3 points) = -2. (b) Compute the variance of 2-step ahead forecast error at the forecast origin 100. (3 points) == 100. (3 (c) Compute the 500-step-ahead prediction of 2600 at the forecast origin t points) 6. Consider the MA model Ct = 10+ w+ +0.5wt-1 where wt is a sequence of independent normal random variables with mean zero and variance 2. Assume that X100 10 and W100 (a) Compute the forecast of X101 at the forecast origin t = 100. (3 points) = -2. (b) Compute the variance of 2-step ahead forecast error at the forecast origin 100. (3 points) == 100. (3 (c) Compute the 500-step-ahead prediction of 2600 at the forecast origin t points)