Question: How does the stochastic discount factor ( SDF ) of a given state vary with the probability of that state? O a . Decrease O

How does the stochastic discount factor (SDF) of a given state vary with the probability of that state?
O a.
Decrease
O b.Constant
0 cIncrease
O d. None of the statements are correct
Oe.Decrease and then increase

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