2.Let us solve a two-period consumption investment decision similar to the one pre- sented in the text.

Question:

2.Let us solve a two-period consumption investment decision similar to the one pre-

sented in the text. Assume that you have income equal to $20 in each of two periods, Furthermore, you have the ability to both lend and borrow money at a 10% rate.

Draw the opportunity set and your indifference map. Show the optimum amount of consumption in each period.

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Related Book For  book-img-for-question

Modern Portfolio Theory And Investment Analysis

ISBN: 9780471007432

5th Edition

Authors: Edwin J. Elton, Martin Jay Gruber

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