Question: Please help with answer asap .. + Automatlsk zoom : There are two states of the world, state 1 and state 2. The probability for

Please help with answer asap

Please help with answer asap .. + Automatlsk zoom : There are

.. + Automatlsk zoom : There are two states of the world, state 1 and state 2. The probability for state 1 occurring is H %(and the probability for state 2 occurring is (1- Hi= ). It Is not possible to directly trade in state claims. However. there exists a complete asset market where two assets, asset A1 and asset A; can be traded. a) State the conditions that have to be satised for a complete asset market. The price of A; is given by P1A=8, and the price of A2 is given by P2\": 6. The following yield matrix indicates how much each asset yields in.each state (e.g. A; yields 2121: Sin stde 2): Asset A1 Asset A; Consider an individual whose preference-scaling function' is given by Vici=\\/E and who is endowed with q; = 10 units of A; and q; = 10 units OfAz

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