A sequenceis 
defined recursively by the equation 
for 
where 
. Use your calculator to guess the limit of the sequence.
Definitions:
Sharpe Ratio
A measure to evaluate the performance of an investment compared to a risk-free asset, after adjusting for its risk. It’s calculated by subtracting the risk-free return from the return of the investment and dividing by the investment's standard deviation.
Small U.S. Stocks
Refers to shares of smaller companies in the United States, typically characterized by a lower market capitalization.
Long-Term U.S. Treasury Bonds
Government bonds with maturities typically longer than 10 years, considered among the safest investment securities.
Market Risk Premium
The excess return that investors require for choosing to invest in the stock market over a risk-free asset.
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