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Edit:The book is "Foreign Exchange: Practical Asset Pricing and Macroeconomic Theory" by Adam S Iqbal.

I asked a question relating to these equations a month ago at CAPM and Marginal Utility: How does this derivation work?

but I'm not sure if that thread is active any more so I'm asking it again (If I'm violating some rules please let me know, thank you.) and this time my confusion is with equations 1.37 to 1.39. Specifically, the author omits the subscript to indicate the time at 1.38(Probably some typo and there should be t+1 there as well? Or is he trying to indicate that ct+1/ct is Rt+1 and ct/ct+1 is Rt? ) but more importantly how did he go from 1.38 to 1.39? That has to be incorrect or am I missing something? Thank you

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  • $\begingroup$ Thx for the question. While it relates to the same pages of the book, your question appears to be different than the earlier one. Otherwise, it would be closed due to being a duplicate. $\endgroup$ Commented Sep 7, 2024 at 3:55
  • $\begingroup$ What book is this? Consider editing your post to include this information. $\endgroup$ Commented Sep 7, 2024 at 6:26
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    $\begingroup$ @RichardHardy This is from '"Foreign Exchange: Practical Asset Pricing and Macroeconomic Theory" by Adam S Iqbal. I will edit the post accordingly as per your suggestion. $\endgroup$ Commented Sep 7, 2024 at 7:01

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