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Assignment questions, attached images for better quality. f(b) Consider the following modication to the Diamond and Dybvig model. Assume that it is costly to cancel

Assignment questions, attached images for better quality.

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\f(b) Consider the following modication to the Diamond and Dybvig model. Assume that it is costly to cancel an investment project. If an investment project is cancelled, instead of providing a return of 1, assmne that the project is only able to produce a return of .'L'

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