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Let Y1, Y2, ... be an adapted sequence, and let cn ∈ R, n ≥ 1.
(a) Suppose that E(Yn+1|Fn) = Yn +cn. Compensate suitably to exhibit a martingale.
(b) Suppose that E(Yn+1|Fn) = Yn·cn. Compensate suitably to exhibit a martingale.
Statistics and Probability, Statistics
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