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Easy · Probability & Statistics · Quant Trader interview question · random-walk, stationarity, time-series, variance
Consider a simple random walk defined by the equation: $X_t = X_{t-1} + \epsilon_t$, where $\epsilon_t$ is a white noise process with mean 0 and constant variance $\sigma^2$. Assume $X_0 = 0$. Is this random walk process stationary?