Periodicity and limiting distribution
A Markov chain alternates strictly between two states every step. What is its period, and does it have a unique limiting distribution?
Show hints (2)+
- Returns happen only at even times.
- Periodicity blocks a limit but not a time-average stationary law.
Answer
Reveal answer →Final answer
Period 2; no limiting distribution (time-average is )
Create a free account to see the full worked solution and track your progress.
Interview format: Market Maker, Prop Trading