Guys I totally don’t understand what this question is asking for, so here is the question, can someone explain what’s going on?
[question removed by admin]
my question-what the eff is this question asking? does Rb represent the return if the money were put in the portfolio at the beginning of the time? if this were the case, shouldn’t the return of Rb>Re, becauese you grow that money you put in during this period. Instead of the return of Re, which is you putting the money into the portfolio at the end of the period and your money doens’t get a chance to grow? am i understanding this question wrong?