RDP 8707: Asymmetric Information and Bid-Ask Spreads in the Eurocurrency Markets
Equation
E
(
ε
|
y
=
k
)
=
E
(
ε
)
+
cov
(
ε
,
y
)
var
(
y
)
(
k
−
E
(
y
)
)
MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaaeyramaabmaabaGaeqyTduMaaiiFaiaabMhacqGH9aqpcaqGRbaacaGLOaGaayzkaaGaeyypa0JaaeyramaabmaabaGaeqyTdugacaGLOaGaayzkaaGaey4kaSYaaSaaaeaacaqGJbGaae4BaiaabAhadaqadaqaaiabew7aLjaacYcacaqG5baacaGLOaGaayzkaaaabaGaaeODaiaabggacaqGYbWaaeWaaeaacaqG5baacaGLOaGaayzkaaaaaiaaykW7daqadaqaaiaabUgacqGHsislcaqGfbWaaeWaaeaacaqG5baacaGLOaGaayzkaaaacaGLOaGaayzkaaaaaa@590C@