Discuss the below:
Q: Consider an investment in the Macy's stock over the next year. Let R denote the monthly simple return and assume thatR~N(0.04,(0.10)2). That is,E[R]=0.04 and var(R)=(0.10)2. LetW0= $1,000 denote the initial investment (at the beginning of the month), and let W1=W0(1 +R) denote the investment value at the end of the month.