Show that the growth rate in an index futures price equals the excess return of the portfolio underlying the index over the risk free rate Assume that the risk free interest rate and the dividend yield are constant ...

Suppose that is the futures price at time zero for a ...

Show that the growth rate in an index futures price equals the excess return of the portfolio

Question:

Show that the growth rate in an index futures price equals the excess return of the underlying the index over the risk-free rate. Assume that the risk-free interest rate and the yield are constant. Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...