Question: is ri 1 1. a) Suppose that the return for the first and the return year for the second year is ? Show that the

 is ri 1 1. a) Suppose that the return for the

is ri 1 1. a) Suppose that the return for the first and the return year for the second year is ? Show that the return for the entire period of two years equals rtta +rira b) Show that the return on a deposit subject to periodic compounding is not additive, i.e., in general, R [tratadt R[ta, ts] = RIt,,ts] for t, a ta atz c) prove that r ct) = P(1 + i) with P, iso is an increasing convex function of time to

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