Fifth Homework Set Answers
12. (a) The equation is
1 = E(r
1
d
+ r
2
d
) = E(r
1
d
) + E(r
2
d
) = 2(4/(d+1))((1/2)
d+1
- (1/4)
d+1
)
(b) The numerical solution is d = .703.
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Homework 5 Practice
.