Falcó, Antonio; Rubia, Antonio; Acedo, F.; Benito, Francis - Instituto Valenciano de Investigaciones Económicas (IVIE) - 1999
In this paper we provide a new approach to the Fundamental Theorem of As-set Pricing. The proofof this result is usually based on Projection (Separation) Theorems and is far more intuitive. Ourapproach follow the relation between the projection problem an equivalent least squares problem.More...