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= with Rt,k - = (17) In passive portfolio management, we talked about the Factor Based Replication method. Suppose we are targeting at replicating the
= with Rt,k - = (17) In passive portfolio management, we talked about the Factor Based Replication method. Suppose we are targeting at replicating the per- formance of a bond index returns denoted as Rb = [R1,6, R2,b, ..., R1,1] where Rt,b with 1
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