Question: Exercise 1.1. Suppose that the return for the first year is ri and the return for the second year is r2. Show that the return

Exercise 1.1. Suppose that the return for the first year is

Exercise 1.1. Suppose that the return for the first year is ri and the return for the second year is r2. Show that the return for the entire period of two years equals r +r2+r1r2

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