Consider a mean-variance optimizer that wants to invest in bonds for two periods.
in or...
Business, 25.11.2019 18:31 aasiarobinson998
Consider a mean-variance optimizer that wants to invest in bonds for two periods.
in order for them to be indifferent between the two year bonds and rolling over two one year bonds, what must the liquidity premium equal?
what if the want to invest in n periods and are indifferent between the n period bond and an n ?
1 period bond rolled over into a one period bond?
Answers: 2
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