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2) Consider the baseline asset pricing model our slide. pou'(P)(1-2)+) Prove that the function in equation (3) given by (Pb,q) = increases u'yo+e) 20(4) with Pb, i.e. show that > 0, if utility function satisfies that for all x > 0, u"(x) 0 3) Consider the asset pricing model with uncertainty in the slide. We derived the asset prices as By[tu' (y + yn + ez) + (1 T)u'(y + y2 +ex)] u'e.) B[mynu'(y + yn + ez) + (1 - 1)yu' (y + y + ez)] Ps u'(e) in the class. We showed that Po > ps in the class if u"(x) 0. Now prove that po = ps if u"(x) = 0 for all x > 0. (Hint: u"(x) = 0 for all x > 0 means that u'(x) is constant for all x > 0)