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Compute the mean and variance

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Reference no: EM131992141

Suppose Xt follows a random walk model (i.e Xt = Xt-1 + et ) et ~ i.i.d (0.5, 1)

a) Compute the mean and variance of (Xt) when t=5 and we assume X0= 0

b) What is variance of X5 - X3

Reference no: EM131992141

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