Question: Suppose you estimate a GARCH model (with p = q = 1) of monthly volatility in the value of the dollar and arrive at the

Suppose you estimate a GARCH model (with p = q = 1) of monthly volatility in the value of the dollar and arrive at the following estimates: t2 = 0.0052 + (0.30)t-12 + (0.40)st-12, where the conditional variance (t-12) and the square of the percentage change in the spot (st-12) are from the previous period. If t-1 = 0.04 and st-1 = 0.12, what is the GARCH estimate of conditional volatility?

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