Question: Consider a variable, S, that follows the process dS=dt+dz For the first three years, =2 and =3; for the next three years, =3 and =4.

Consider a variable, S, that follows the process dS=dt+dz For the

Consider a variable, S, that follows the process dS=dt+dz For the first three years, =2 and =3; for the next three years, =3 and =4. If the initial value of the variable is 5 , what is the probability distribution of the value of the variable at the end of year six? Hint: Think about the distribution for S for the first three years and the second three years independently

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