Explain the difference between a markov and a non-markov
1. Explain the difference between a Markov and a non-Markov model of the short rate.
2. Prove the relationship between the drift and volatility of the forward rate for the multifactor version of HJM in equation (31.6).
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refer to exercise 12 in chapter 4 plot standardized residuals vs the 1-2-3-4-5 scores for political ideology which
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