RDP 9501: Modern Approaches to Asset Price Formation: A Survey of Recent Theoretical Literature
Equation (8)
b
t
+
1
=
(
1
+
a
π
.
a
)
.
b
t
+
e
t
+
1
with
probability
π
=
e
t
+
1
with probability
(
1
−
π
)
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