The question asks for expected accumulation and its s.d . The solution provided uses the log Normal distribution. I solved the s.d by using var = ((1+j)^2 + s^2)^10 - (1+j)^20 The answers are identical. Is my method correct? My doubt arises because of the marks on offer. The question is for 8 marks. In the exam are expected to solve it using the log normal method or is using formulas accepted? Many thanks!
I concur that this method is completely acceptable. The 8 marks is extraordinarily generous regardless of the approach though.
