Titlebook: Solutions to Financial Economics; Exercises on Classic Thorsten Hens,Marc Oliver Rieger Book 2019 Springer-Verlag GmbH Germany, part of Spr

Gobble

Solutions to Financial Economics978-3-662-59889-4Series ISSN 2192-4333 Series E-ISSN 2192-4341

Nuance

构想

Book 2019ings that help us to understand many puzzles in traditional finance. Tailor-made for master’s and PhD students, it includes tests and exercises that enable students to keep track of their progress. Parts of the book can also be used at the bachelor level..

推延

2 Decision TheoryConsider the following game: you roll a dice, if you roll a 6, you win 6 million € otherwise you win nothing. You can play only once. Let us assume your expected utility function is given by .(.) =log.. (base 10 logarithm, i.e., log.(10.) = .) and your initial wealth is 10,000 €.

发电机

3 Two-Period Model: Mean-Variance ApproachThere are two risky assets, . = 1, 2 and one risk-free asset with return of 2%. Risky assets cannot be short sold. The expected returns of the risky assets are .. := 5% and .. := 7.5%. The covariance matrix is:

Derogate

5 Multiple-Periods ModelLet us consider the following three-period model where the returns of two assets are marked at each node

GRILL

背叛者

8 Time-Continuous ModelLet . be a Wiener process. Find the expressions for

转折点

兽皮