Exercise 1 A time value of an investment follows a binomial model where the one step retum rate for each time period has the possible values 5 % and 2% with corresponding probabilities 0.35 and 0.65 respectively. 1) Find the value both mean and variance for the time value after 4 time periods where the beginning value of investment equals to 14 S 2) Write a computational simulation to implement the required of item I without depending on the mathematical relation Exercise 1 A time value of an investment follows a binomial model where the one step retum rate for each time period has the possible values 5 % and 2% with corresponding probabilities 0.35 and 0.65 respectively. 1) Find the value both mean and variance for the time value after 4 time periods where the beginning value of investment equals to 14 S 2) Write a computational simulation to implement the required of item I without depending on the mathematical relation