Today is t = 0. We are currently in an extremely HIGH volatility environment where the Risk Metrics, GARCHA, and GARCHB models all have the same forecast for 2 1. The GARCHA model has a persistence of 0.9 and the GARCHB model has a persistence of 0.7. For the questions below you will be graded on the general shape of your charts, so don't worry about being too precise. On one graph, plot K-day horizon return ANNUALIZED standard deviation (Y-axis) as a function of K, for K = 1 to 250 (X-axis) for the three models (Risk Metrics, GARCH A and GARCH B). Make sure to clearly label each line. No explanation required. Note: "K-day horizon return ANNUALIZED standard deviation" is not the same thing as "daily return standard deviation on day K.

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here is the graph Kday Horizon Return ANN... View the full answer