[20pts] In decomposing the rent-price ratio (d-p), we arrived at the following identity: 8 8 d Pt = k + [p-Bc[it+j] + [p/-e[T+] - p/-e[Ade+s] j=1 j=1 j=1 a) What do each of the terms on the right hand side represent? b) Using the above equation, explain the implications of an investment having a high rent-price ratio (current yield)?

[20pts] In decomposing the rent-price ratio (dp), we arrived at the following identity: dtpt=k+j=1j1E^t[it+j]+j=1j1E^t[t+j]j=1j1E^t[dt+j] a) What do each of the terms on the right hand side represent? b) Using the above equation, explain the implications of an investment having a high rent-price ratio (current yield)