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(Standard form) Let M be a marketed asset that is also a pricing asset such that for every marketed payoff x there holds Px =
(Standard form) Let M be a marketed asset that is also a pricing asset such that for every marketed payoff x there holds Px = E[Mx]. Show that it follows that Px= R Cov(x,M) -[M - PMR] OM wri] (Hint: Apply the original formula to 1 and to M itself.] (Standard form) Let M be a marketed asset that is also a pricing asset such that for every marketed payoff x there holds Px = E[Mx]. Show that it follows that Px= R Cov(x,M) -[M - PMR] OM wri] (Hint: Apply the original formula to 1 and to M itself.]
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