Suppose that the market price of risk for gold is zero if, Financial Management

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Suppose that the market price of risk for gold is zero if

1. How is the market price of risk defined for a variable that is not the price of an investment asset?

2. Suppose that the market price of risk for gold is zero. If the storage costs are 1% per annum and the risk-free rate of interest is 6% per annum, what is the expected growth rate in the price of gold? Assume that gold provides no income.

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Financial Management: Suppose that the market price of risk for gold is zero if

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Financial Management: Suppose that the market price of risk for gold is zero if

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