Question: Help here. Consider a share, whose value is assumed to change each day according to the following probability distribution: +10p with probability - C=+8p with

Help here.

Help here. Consider a share, whose value isHelp here. Consider a share, whose value is
Consider a share, whose value is assumed to change each day according to the following probability distribution: +10p with probability - C=+8p with probability + -9p with probability Show that C is a martingale under this probability distribution.An investor has the choice of the following assets that earn rates of return as follows in each of the four possible states of the world: State Probability Asset I Asset 2 Asset 3 0.2 5% 5% 6% N 0.3 5% 12% 5% 0.1 5% 3% 4% 0.4 5% 1% 7% Market capitalisation 10.00 0 17.546 82.454 Determine the market price of risk assuming CAPM holds. Define all terms used. [6]

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