Question: 1 ta 1 point For the two period representative agent consumption-based capital asset pricing model (C-CAPM), an individual with utility function U(C), marginal utility U'(C)),

 1 ta 1 point For the two period representative agent consumption-based

1 ta 1 point For the two period representative agent consumption-based capital asset pricing model (C-CAPM), an individual with utility function U(C), marginal utility U'(C)), rational expectations E(.) and subjective discount factor will buy an asset with gross return (1+R++1) as long as is greater than E(U'(Ct)(1+Rt-1)); OU (C) O E(OU (C-1)(1+RE+1)): U'(Ct) E(OU'(C-1)); U'(Ct) Alt + A U'(Ct): E(OU'(C-1)(1+R-1)) 1 ta 1 point For the two period representative agent consumption-based capital asset pricing model (C-CAPM), an individual with utility function U(C), marginal utility U'(C)), rational expectations E(.) and subjective discount factor will buy an asset with gross return (1+R++1) as long as is greater than E(U'(Ct)(1+Rt-1)); OU (C) O E(OU (C-1)(1+RE+1)): U'(Ct) E(OU'(C-1)); U'(Ct) Alt + A U'(Ct): E(OU'(C-1)(1+R-1))

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