OBSERVATION OF TECTONIC SAMPLES Observe tectonic samples in the STRUCTURAL SCOPE. Discuss what you observed with your group members. Select one representative of the group to exchange ideas with other groups in the class
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Our task How to estimate and test discount factor model. Ep,=E(m (data 1, parameter)) 1. Bring an asset pricing model to data to estimate free parameters. For example, parameter,yinm=B(c+1/c)-y Or the b in m=b f 2. Evaluate the model, is it a good model or not? Is another model better?
