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Consider a random interest rate R₂ paid in year i and another random interest rate R, paid in year j, with i j. Which of the following statements are correct? Tick all those that are correct and don't tick those that are incorrect. O a. Random interest rates R₂ are always lognormally distributed. Ob. In real markets, the assumption of statistically independent interest rates R₂ and R; can be quite unrealistic. O c. The equation E(R₁ + Rj) = E(R₂) + E(R;) necessarily requires that R₂ and R, are statistically independent. Od. The variance satisfies Var(aR;) = a² Var(R;) for any positive constant a. □e. If R₂ and R, are statistically independent then necessarily they are also uncorrelated. Of. If \(R_i\) and \(R_j \) are uncorrelated then necessarily they are also statistically independent.

Consider a random interest rate R₂ paid in year i and another random interest rate R, paid in year j, with i j. Which of the following statements are correct? Tick all those that are correct and don't tick those that are incorrect. O a. Random interest rates R₂ are always lognormally distributed. Ob. In real markets, the assumption of statistically independent interest rates R₂ and R; can be quite unrealistic. O c. The equation E(R₁ + Rj) = E(R₂) + E(R;) necessarily requires that R₂ and R, are statistically independent. Od. The variance satisfies Var(aR;) = a² Var(R;) for any positive constant a. □e. If R₂ and R, are statistically independent then necessarily they are also uncorrelated. Of. If \(R_i\) and \(R_j \) are uncorrelated then necessarily they are also statistically independent.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Consider a random interest rate R₂ paid in year i and another random interest rate R.; paid in year j, with i j. Which of the following statements are correct? Tick all those that are correct and don't tick those that are incorrect. O a. Random interest rates R₂ are always lognormally distributed. Ob. In real markets, the assumption of statistically independent interest rates R₂ and R, can be quite unrealistic. O c. The equation E(R₂ + Rj) = : E(R₂) + E(R;) necessarily requires that R; and R, are statistically independent. Od. The variance satisfies Var(aR₂) = a²Var (R₂) for any positive constant a. Oe. If R₂ and R, are statistically independent then necessarily they are also uncorrelated. Of. If \(R_i\) and \(R_j \) are uncorrelated then necessarily they are also statistically independent.
Transcribed Image Text:Consider a random interest rate R₂ paid in year i and another random interest rate R.; paid in year j, with i j. Which of the following statements are correct? Tick all those that are correct and don't tick those that are incorrect. O a. Random interest rates R₂ are always lognormally distributed. Ob. In real markets, the assumption of statistically independent interest rates R₂ and R, can be quite unrealistic. O c. The equation E(R₂ + Rj) = : E(R₂) + E(R;) necessarily requires that R; and R, are statistically independent. Od. The variance satisfies Var(aR₂) = a²Var (R₂) for any positive constant a. Oe. If R₂ and R, are statistically independent then necessarily they are also uncorrelated. Of. If \(R_i\) and \(R_j \) are uncorrelated then necessarily they are also statistically independent.
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