Question: 32. Let {X(t),

32. Let {X(t),−∞

(a) Show that Var(X(t + s) − X(t)) = 2RX(0) − 2RX(t)

(b) If Y(t) = X(t + 1) − X(t) show that {Y(t), −∞

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Theory Of Probability Questions!

Q:

a) Consider four risky assets having the following expected returns E() and variance- covariance matrix (S), where c is a constant: B D E Variance-covariance, S F G Er) Mean minus returns constan...

Q:

Hi Akshya, plz find the attachments and let me know if you can help me in completing the finance problems in worh or excel formats. FINA 6301 HW Problems - 10TH Edition Chapters 10 and 11 - Session 8...

Q:

Microkernel operating systems aim to address perceived modularity and reliability issues in traditional "monolithic" operating systems. (i) Describe the typical architecture of a microkernel...

Q:

1. A player throws a fair die and simultaneously flips a fair coin. If the coin lands heads, then she wins twice, and if tails, then one-half of the value that appears on the die. Determine her...

Q:

Problem 67: PIN guessing ( ) In order to get money from a cash dispenser I have to punch in a Personal Identification Number. I have forgotten my PIN, but I do know that it is equally likely to be...

Q:

addition, we have two blue balls, we can express the ratio of red to green to blue as 5:3:2. If units are involved, they are excluded from the ratio. However, it is important that all quantities in a...

Q:

3.6 Exercises Exercise 3.1 If X (I), 1' 3 0 is a Brownian motion process with drift parameter ,u. and variance parameter a2 for which X (0) = 0, show that X (0,: Z 0 is a Brownian motion process with...

Q:

No calculator is allowed on this question. (-5,1) (-2,-2) Graph of f 0 (2, 0) (3,-2) Let (x) be the function whose graph, which consists of three line segments and a semicircle, is shown above. f is...

Q:

A financial institution owns a portfolio of instruments dependent on the U.S. dollar-sterling exchange rate.The delta of the portfolio with respect to percentage changes in the exchange rate is 3.9....

Q:

If x is a rational number, then x can be written in a unique way as a quotient of integers m/n where n > 0 and m and n have no common factors greater than 1. (We say that such a fraction is in lowest...

Q:

Us Republic Corporation Balance Sheet, December 31, 20x3 Us Republic Corporation Statement Of Income And Retained Earnings, Year Ended December 31, 20x3 a. Fill in the 20X3 column in the table that...

Q:

Write about Execution of Strategy at Mozilla answer the following question: 1. How would you describe Mozilla's cultural and organizational DNA? What, specifically, about the way Mozilla enacts...

Q:

Which of the following would be an illustration of a poor incentive? Group of answer choices Buy side analyst weight the the risk - retun relation. Analysts are hesitant to recommend a "sell"...

Q:

Ridge, Inc., reports the following income for the current year. Operations .................................................$92,000 Tax-exempt interest income .....................19,000 Long-term...

Q:

Use Chebyshev's inequality to prove the weak law of large numbers. Namely, if X1, X2,... are independent and identically distributed with mean and variance then, for any > 0, P n - 0 as n

Q:

Show that the sum of independent identically distributed exponential random variables has a gamma distribution.

Q:

Calculate the moment generating function of a geometric random variable.

Q:

Which of the following are benefits of decentralization? Training and development opportunities for managers are supported. Managers at corporate headquarters have greater control in seeing that the...

Q:

Jonathan is a cash-method taxpayer with a tax year ending December 31, 2014. Based on his excellent performance throughout the year, on December 1, his boss informed Jonathan that he would receive a...

Q:

Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Golf Guard Fishing Guard...