Consider the equation Xt = X0 + dt + Wt, with Yt = eXt . Assuming

Question:

Consider the equation Xt = X0 + μdt + σWt, with Yt = eXt . Assuming μ = 0.1, σ = 0.15 and a time period t = 0.5, generate paths for Xt and Yt by generating random normal variables Wt. Compute the expectation of Xt and Yt. Plot histograms of Xt and Yt. What does it look like they follow? Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...