Consider the asset pricing model with uncertainty in the slide. We derived the asset prices as By[tu'(y+yn+ez)+(1-7)u' (y+y1+ez)] Po = u'(21) B[Tynu' (y+yn+e2)+(1-1)ylu'(y+yi+ez)] Ps = u'(41) in the class. We show that pb > Ps in the class if u"(x) 0. Now prove that Pp = 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) Consider the asset pricing model with uncertainty in the slide. We derived the asset prices as By[tu'(y+yn+ez)+(1-7)u' (y+y1+ez)] Po = u'(21) B[Tynu' (y+yn+e2)+(1-1)ylu'(y+yi+ez)] Ps = u'(41) in the class. We show that pb > Ps in the class if u"(x) 0. Now prove that Pp = 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)