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Workout and explain intertemporal optimization and portfolio optimization conditions for a two period consumption model in which an individual has fixed endowment in the first

Workout and explain intertemporal optimization and portfolio optimization conditions for a two period consumption model in which an individual has fixed endowment in the first period. After meeting his consumption requirements in first period he can keep the remaining wealth in locker with no return and no risk \'and/or\' invest in safe asset with low rate of return \'and /or\' invest in risky asset with relatively higher rate of return.

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Intertemporal Optimization and Portfolio Optimization in a TwoPeriod Model This scenario describes a twoperiod consumption model with an interesting t... blur-text-image

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