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Unformatted text preview: A scaled measure of how much two variables move together 1 1 Regression, Beta=.5, corr=.93 Normal Distribution Normal Versus FatTailed Present Discounted Value (PDV) PDV of a dollar in one year = 1/(1+r) PDV of a dollar in n years = 1/(1+r) n PDV of a stream of payments x 1 ,.., x n Consol and Annuity Formulas Consol pays constant quantity x forever Growing consol pays x (1+ g )^( t1) in t Annuity pays x from time 1 to T...
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 Spring '08
 RobertShiller

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