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Question 2 (30 Points) (a) Suppose that RE is expected to grow at a gross rate g from the forecast horizon T+ 1 onwards, i.e.,
Question 2 (30 Points) (a) Suppose that RE is expected to grow at a gross rate g from the forecast horizon T+ 1 onwards, i.e., RETtiti = gRETti, i = 1, 2, ..., 1
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