Use Code 7.10 with twelve months of returns for a stock of your choice, with several “reasonable” choices of the mixture probability, the two mean parameters, and two variance parameters. Explore...



Use Code 7.10 with twelve months of returns for a stock of your choice,


with several “reasonable” choices of the mixture probability, the two mean


parameters, and two variance parameters. Explore possible unimodal and


bimodal posterior densities that are achievable by using a normal mixture


prior.



May 26, 2022
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