Question: could anyone give me a step by step solution. Question 24 Complete Consider a Kyle (1985) model set-up in which the true value of the
could anyone give me a step by step solution.
Question 24 Complete Consider a Kyle (1985) model set-up in which the true value of the stock is $100.00, the unconditional variance of the true value is 60 and the variance of uninformed trading is 10,000. If the value of the stock is $80.00 without private information, the dealer's equilibrium expected profit is: Mark 0.00 out of 1.00 Select one: a. $0.00 O b. $64,549.72 O c. $774.60 O d. $387.30 Consider a Kyle (1985) model set-up in which the true value of the stock is $100.00, the unconditional variance of the true value is 60 and the variance of uninformed trading is 10,000. If the value of the stock is $80.00 without private information and the uninformed trading demand is zero, the dealer's equilibrium price is: Select one: a. $90.00 O b. $100.00 O c. $80.00 O d. $80.77 Question 24 Complete Consider a Kyle (1985) model set-up in which the true value of the stock is $100.00, the unconditional variance of the true value is 60 and the variance of uninformed trading is 10,000. If the value of the stock is $80.00 without private information, the dealer's equilibrium expected profit is: Mark 0.00 out of 1.00 Select one: a. $0.00 O b. $64,549.72 O c. $774.60 O d. $387.30 Consider a Kyle (1985) model set-up in which the true value of the stock is $100.00, the unconditional variance of the true value is 60 and the variance of uninformed trading is 10,000. If the value of the stock is $80.00 without private information and the uninformed trading demand is zero, the dealer's equilibrium price is: Select one: a. $90.00 O b. $100.00 O c. $80.00 O d. $80.77
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