Question: 11. Predicting future order ow. In section 3.4.2, we discuss how the direction of the order ow at future dates t and beyond can be

 11. Predicting future order ow. In section 3.4.2, we discuss how

the direction of the order ow at future dates t and beyond

11. Predicting future order ow. In section 3.4.2, we discuss how the direction of the order ow at future dates t and beyond can be predicted given the current belief 9P1 about the probability of a high value of the stock: a. Use table 3.2 to determine E (dt+T) for any T 2 0, given the current belief 613-1. b. Use equation (3.16) to update beliefs in the wake of a buy order and thus compute: mm | mad: = 1) Evita l 9H)

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