12. λ=0.5, ω=0 Home Country Foreign Country Asset 1 Asset 2 1
(λ+ω) investors receive information about Asset 1
(λ-ω) investors receive information about Asset 2
(λ-ω) investors receive information about Asset 1
(λ+ω) investors receive information about Asset 2
λ=0.5, ω=0
Home Country
Foreign Country
Asset 1
Asset 2 1

13. λ=0.5, ω=0.05 Home Country Foreign Country Asset 1 Asset 2 1
(λ+ω) investors receive information about Asset 1
(λ-ω) investors receive information about Asset 2
(λ-ω) investors receive information about Asset 1
(λ+ω) investors receive information about Asset 2
λ=0.5, ω=0.05
Home Country
Foreign Country
Asset 1
Asset 2 1

14. λ=0.5, ω=0.10 Home Country Foreign Country Asset 1 Asset 2 1
(λ+ω) investors receive information about Asset 1
(λ-ω) investors receive information about Asset 2
(λ-ω) investors receive information about Asset 1
(λ+ω) investors receive information about Asset 2
λ=0.5, ω=0.10
Home Country
Foreign Country
Asset 1
Asset 2 1

15. λ=0.5, ω=0.15 Home Country Foreign Country Asset 1 Asset 2 1
(λ+ω) investors receive information about Asset 1
(λ-ω) investors receive information about Asset 2
(λ-ω) investors receive information about Asset 1
(λ+ω) investors receive information about Asset 2
λ=0.5, ω=0.15
Home Country
Foreign Country
Asset 1
Asset 2 1

16. λ=0.5, ω=0.20 Home Country Foreign Country Asset 1 Asset 2 1
(λ+ω) investors receive information about Asset 1
(λ-ω) investors receive information about Asset 2
(λ-ω) investors receive information about Asset 1
(λ+ω) investors receive information about Asset 2
λ=0.5, ω=0.20
Home Country
Foreign Country
Asset 1
Asset 2 1

17. λ=0.5, ω=0.25 Home Country Foreign Country Asset 1 Asset 2 1
(λ+ω) investors receive information about Asset 1
(λ-ω) investors receive information about Asset 2
(λ-ω) investors receive information about Asset 1
(λ+ω) investors receive information about Asset 2
λ=0.5, ω=0.25
Home Country
Foreign Country
Asset 1
Asset 2 1

18. λ=0.5, ω=0.25 Home Country Foreign Country Asset 1 Asset 2 1
(λ+ω) investors receive information about Asset 1
(λ-ω) investors receive information about Asset 2
(λ-ω) investors receive information about Asset 1
(λ+ω) investors receive information about Asset 2
λ=0.5, ω=0.25
Home Country
Foreign Country
Asset 1
Asset 2 1
Grossman Stiglitz (1980), Hellwig (1980), Admati (1985): postulate equilibrium price as a linear function of the average signals and the aggregate stock supply, find the optimal demands and impose market clearing to solve for the undetermined coefficients.

19. Normalized price signal
Private signals
Normalized price signal
Nu conteaza unde e investitorul, daca are acelasi tip i(.) atunci va avea acelasi portofoliu. Apoi i(1,2) si i(1) au acelasi portfoliu pentru activul 1.
Explica ca este un efect de compozitie. Spune cum calculezi home bias

20. Explica gamma!
Grossman Stiglitz (1980), Hellwig (1980), Admati (1985): postulate equilibrium price as a linear function of the average signals and the aggregate stock supply, find the optimal demands and impose market clearing to solve for the undetermined coefficients.