Question: The table here shows the no arbitrage prices of securities A

The table here shows the no-arbitrage prices of securities A and B that we calculated.

a. What are the payoffs of a portfolio of one share of security A and one share of security B?
b. What is the market price of this portfolio? What expected return will you earn from holding thisportfolio?
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  • CreatedJuly 27, 2014
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