In the random walk model, suppose the distribution of the X k s is given by P(X

Question:

In the random walk model, suppose the distribution of the X_k’s is given by P(X_k = +1) = p and P(X_k = −1) = 1 − p. If p > 1/2, this describes a random walk with positive drift. Find E[S] and V[S].

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...

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