correlation matrix of an AR(1) process

Question

Suppose we have a process whose elements follow an AR(1) pattern with correlation $\rho$. I am confused, concerning the following: The exact form of the $(i,j)$ element of the correlation matrix P is $\rho^{|i-j|}/(1-\rho^2)$ or $\rho^{|i-j|}$?

Answer 1

I can't see how it would be $\rho^{|i-j|}/(1-\rho^2)$ since that would allow correlations above $1$. In fact, that matrix could have correlations approaching $\infty$ for $\rho$ near $1$.