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Question A (10 points) Suppose that the asset return rt follows the model rt = at = At = 0tet, Et~iid N(0,1) of = 0.05

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Question A (10 points) Suppose that the asset return rt follows the model rt = at = At = 0tet, Et~iid N(0,1) of = 0.05 + 0.135a7-1 + 0.88507-1 Does the unconditional variance of r exist? Why

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