Question: 12419 Financial Economics Problem Set 4 Problem 1 Suppose that there are two states and three assets with the following returns and prices: Assets State

 12419 Financial Economics Problem Set 4 Problem 1 Suppose that there

12419 Financial Economics Problem Set 4 Problem 1 Suppose that there are two states and three assets with the following returns and prices: Assets State 1 State 2 Price 4 4.5 4 1.5 (a) Find the equilibrium price of asset C. (b) Find ,T, q1 and q2

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