Question: Let a stock's return follows the below model: Yt = 0.01 +0.2yt-2+ & where & ~w.n. (0,0.2) a) What is the return yt's mean

Let a stock's return follows the below model: Yt = 0.01 +0.2yt-2+

Let a stock's return follows the below model: Yt = 0.01 +0.2yt-2+ & where & ~w.n. (0,0.2) a) What is the return yt's mean and variance? b) What is and 2 ?

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