Sppose xt follows a random walk model ie xt xt-1 et et
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
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