Platen, Eckhard - Finance Discipline Group, Business School - 2009
under the real world probability measure. In contrast to risk neutral pricing, the long term excess return of the equity … that these are downward trending or at least trendless. Furthermore, the benchmarked real world price of a benchmarked … claimis defined to be its real world conditional expectation. This yields the minimal possible price for its hedgable part and …