For 2 marks I guess the mean and variance are meant to be known and not deduced. Where are these formulae given/derived in the course? I can't find them anywhere. I thought maybe term structure of interest rates but I couldn't find them in that chapter.
Hi Patrick, I believe that question is out of scope (it has been excluded from the ASET solutions due to being no longer on the syllabus). I assume thats why you cant find those formulae in the course
