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Which of the following statements is true? a. A random walk process is stationary. b. The variance of a random walk process increases as a linear function of time. c. Adding a drift term to a random walk process makes it stationary. d. The variance of a random walk process with a drift decreases as an exponential function of time.

Respuesta :

Manetho

Step-by-step explanation:

The correct statement in the following is b. The variance of a random walk process increases as a linear function of time. This is because of the fact that it keeps adding the variance of the next increments to the variability we have in getting to where we are now.

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