Show that when f and g provide income at rates qf and qg, respectively, equation (28.15)
Chapter 28, Problem 28.8(choose chapter or problem)
Show that when f and g provide income at rates qf and qg, respectively, equation (28.15) becomes f0 g0e qf qgTEg fT gT (Hint: Form new securities f and g that provide no income by assuming that all the income from f is reinvested in f and all the income in g is reinvested in g.) 2
Unfortunately, we don't have that question answered yet. But you can get it answered in just 5 hours by Logging in or Becoming a subscriber.
Becoming a subscriber
Or look for another answer