Suppose I'm given two assets, $x_0$, $x_1$ and the stochastic discount factor m. How do I find $m_p$, then use it to compute Sharpe($R_p$)?
Any help is greatly appreciated.
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$\begingroup$ Isn't this a text-book thing? $\endgroup$– SmallChessMar 19, 2015 at 22:57
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2$\begingroup$ Please use latex and explain the difference between $m$ and $m_p$ and if you have assets $x_0$ and $x_1$ (prices? returns?) how does $R_p$ relate to that? $\endgroup$– Richi WaMar 20, 2015 at 7:34
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