13. In the GARCH model o = .00004 + .05r-1+.920-1, today's volatility is 30%. Will the%3Dforecast of volatility rise or fall and what will be the long run forecast?Long-run forecast is 30.5%. Forecast of volatility will rise.O Long-run forecast is 58%. Forecast of volatility will rise.O Long-run forecast is 58%. Forecast of volatility will fall.O Long-run forecast is 3.65%. Forecast of volatility will fall.

The GARCH model is Today's volatilityWhether the volatility forecast will rise or fall and the…

In the GARCH model = .00004+.05-1+.920-1, today's volatility is 30%. Will the forecast of volatility rise or fall and what will be the long run forecast? Long-run forecast is 30.5%. Forecast of volatility will rise. Long-run forecast is 58%. Forecast of volatility will rise. Long-run forecast is 58%. Forecast of volatility will fall. Long-run forecast is 3.65%. Forecast of volatility will fall.