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EXERCISE 13. At the beginning of each year you can buy bonds for 1 Euro that are worth = Euro at the end of the
EXERCISE 13. At the beginning of each year you can buy bonds for 1 Euro that are worth = Euro at the end of the year or stocks that are worth a random amount V 20. If you always invest a fixed proportion p of your wealth in bonds, then your wealth at the end of year n +1 is Wn+1 = (rp + (1 - p)V..)W, where V1, V2,... are i.i.d. with distribution V which has E[V?)
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