Coudert, Virginie (contributor); Gex, Mathieu (contributor) - 2007
from the asset
1+t
x , and the quantity of asset bought in t as ξ. δ is the
intertemporal discount factor, which captures …
tt
x
cu
cu
Ep δ (2)
The asset price expressed in equation (2) can be interpreted as the expected income
1+t
x …, dividing income
1+t
x by
the price
t
p (i.e.
ttt
pxR
11 ++
= )
1
:
()
11
1
++
=
tt
RmE (5)
By definition, the income from …