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Alpha Online Lending plans to offer consumer loans in the amount of $5,000. There are two types of borrowers who visit Alpha Online, type X
Alpha Online Lending plans to offer consumer loans in the amount of $5,000. There are two types of borrowers who visit Alpha Online, type X and Y. Type X repays their loan with prob. 0.94, while type Y repays with prob. 0.82. The bank cannot observe type, but believes that fraction m of the borrower pool is type X and the rest is Y, where 0
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Options Trading For Beginners
Authors: Mike Hartley
1st Edition
979-8864514832
