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#Post#: 52--------------------------------------------------
2010/2011 4 d
DIR By: Celeste
Date: December 28, 2012, 4:47 pm
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hi, anyone have answer for this question? i am a bit confused.
particularly, when we calculate X2 for household A, do we use
e2(A)+a*y2(A)+b*y2(A) or e2(A)+c*y2(A)+d*y2(A)? a bit confused
about the concept of the return vector, if someone can explain
in more details it will be great!
#Post#: 55--------------------------------------------------
Re: 2010/2011 4 d
DIR By: Julia.Wirtz
Date: December 30, 2012, 10:33 am
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The answers are on the module website, no?
For this question, you don't need to do any calculations. All
you need to write is in the model answers. The most important
point is that the return vectors should not be linearly
dependent, i.e multiples of each other ie not: ab=cd. Otherwise
both assets give you the goods in the same ratio, i.e. you
cannot buy or sell them in this ration and not any ratio you
like.
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