For the random walk shown in Figure 5.6.

(a) What is the expected movement during each period?

(b) What is the standard deviation of the movement during each period?

(c) What is the expected movement over \(n\) time periods

\[E\left[X\left(t_{i+n}ight)-X\left(t_{i}ight)ight]\]

(d) What is the standard deviation of the movement over \(n\) time periods

\[\sqrt{\operatorname{Var}\left(X\left(t_{i+n}ight)-X\left(t_{i}ight)ight)}\]

Transcribed Image Text:

p = 1/2 +Ax -Ax A B