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When allowing interest rates to vary, the branch from node to and the branch from node to have the same return because Group of answer
When allowing interest rates to vary, the branch from node to and the branch from node to have the same return because
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we dont want to make our model too complicated.
the probability of going into the upstate is the same as going into the downstate.
there are regulations controlling the rate of return and only one is allowed.
bank investments are not risky and dont change so quickly.
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