3. (a) State four main stylised facts for daily or monthly log-returns, which are common to a wide set of financial assets. (4 marks] (b) Monthly log-returns on a stock after trading months 1 and 2 are denoted by Xi, i = 1,2 respectively. Assume that ~ N(0.002, 0.042), D2 = 0.002+0.0121 +, where e ~ N(0,0.02) is independent of 21. Suppose you buy 200 worth of this stock. Let P, be the amount of money that your investment is worth after the ith trading month. (i) What is the probability that after trading month 1 your investment is worth more than 2012 [3 marks) (ii) Calculate the probability that after trading month 2 your investment is worth less than 199. [3 marks) 3. (a) State four main stylised facts for daily or monthly log-returns, which are common to a wide set of financial assets. (4 marks] (b) Monthly log-returns on a stock after trading months 1 and 2 are denoted by Xi, i = 1,2 respectively. Assume that ~ N(0.002, 0.042), D2 = 0.002+0.0121 +, where e ~ N(0,0.02) is independent of 21. Suppose you buy 200 worth of this stock. Let P, be the amount of money that your investment is worth after the ith trading month. (i) What is the probability that after trading month 1 your investment is worth more than 2012 [3 marks) (ii) Calculate the probability that after trading month 2 your investment is worth less than 199. [3 marks)