What is the lag-1 autocorrelation of the price change, Financial Management

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What is the lag-1 autocorrelation of the price change

Let P_t be the observed market price of an asset, which is related to the fundamental value of the asset via Eq. (5.9). Assume that ? = - _-1 forms a Gaussian white noise series with mean zero and variance 1.0. Suppose that the bid-ask spread is two ticks.

What is the lag-1 autocorrelation of the price change series ?P_t = P_t- P_t-1when the tick size is $1/8?

What is the lag-1 autocorrelation of the price change when the tick size is $1/16?

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