ASM Example 15B and Quiz 15-1

[KingWithoutACrown]

Example 15B-
For the answer in part (i), why is the denominator 0.010sqrt(.1) instead of 0.10sqrt (.1)?

I thought the denominator should be: std dev * sqrt (t).


Quiz 15-1-
How do we arrive at the mean for time 5 by X(3) + 2a, where does this come from?

Thanks..

[Abraham Weishaus]

15B: It's a typo, the problem is worked with 0.1\sqrt{0.1}

Quiz 15-1: See page 225, definition of arithmetic Brownian motion: the expected change is the drift multiplied by the change in time.