We derive an explicit autocorrelation function (ACF) formula of state of polarization for a fiber transmission system with polarization mode dispersion (PMD) and polarization dependent loss (PDL), which is found to agree well with Monte Carlo simulation. Then we use the new ACF to investigate the combined effect of PMD and PDL on the polarization multiplexed scheme. We find the performance of the polarization multiplexed scheme can be deteriorated more severely than the case without PDL.
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