Consider a random interest rate R; 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 but do not tick those that are incorrect. a. If R, and R; are uncorrelated then they are also statistically independent. b. Random interest rates R; are always lognormally distributed. C. In real markets, the assumption of statistically independent interest rates R; and R; is unrealistic. d. If R, and R, are statistically independent then they are also uncorrelated. e. The equation E(R1 + R;) = E(R) + E(R;) holds only if R; and R; are statistically independent. f. The variance satisfies Var(a R;) = a2 Var(R;) for any positive constant a.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

Question

Check Mark

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

See solution