jms202

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Hi there, Thanks for your reply. This is helpful. The one remaining thing I don't understand is why $d_K=0$ given the recursion $d_{t-1} = \beta * (d_t + trace(C' P_t...

Hi Shu, Many thanks for this. Exercise 2 is complicated because it has to be implemented as two chained LQ problems. T = end of life K = end of...