The set of one step return rates K(n), n = 1,2,3, ... of a stock price, subject to a = random walk model with a positive

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The Set Of One Step Return Rates K N N 1 2 3 Of A Stock Price Subject To A Random Walk Model With A Positive 1 (133.8 KiB) Viewed 36 times

The set of one step return rates K(n), n = 1,2,3, ... of a stock price, subject to a = random walk model with a positive displacement d occurring by a probability p. 1) Prove that E[K(n) K(m)] = [Min(n, m) + (2p – 1)?(n m – Min(n, m)]82 = 2) Find the expected value of return rate K(5,7)in case of 8 = 7%, p = 0.28 3) Find the possible values and their probabilities for return rates K(0,2) and K(1,3) in case of 8 = 5%, p = 0.38 = -