using the R program (http://www.r-project.org/). The hw needs to be done using the R
Financial Risk Managementa) Using R download data for the S&P 500 IBM and Microsoft from January 1 2000 to January1 2010.b) Compute all summary statistics for the returns to the S&P 500 IBM and Microsoft:mean returnvariancestandard deviationskewnesskurtosisc) Generate a covariance matrix and a correlation matrix for these assets.d) Use the Jarque-Bera test to determine if the returns to these assets are normally distributed.e) Generate a QQ-plot for each asset.f) Compute the volatility of the S&P 500 IBM and Microsoft using:simple moving averages with a 30-day windowhistorical simulation with a 100-day windowexponentially-weighted moving averages using lambda = 0.94GARCH(11)g) Compute VaR at the 95% level of confidence for a $1000000 portfolio consisting of 30%S&P 500 50% IBM and 20% Microsoft using each of the four volatility models.
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