Question: Question 7 Suppose that the total return for each unit of curity and each unit of security G depends on these staten, boom and reosion.

 Question 7 Suppose that the total return for each unit of
curity and each unit of security G depends on these staten, boom

Question 7 Suppose that the total return for each unit of curity and each unit of security G depends on these staten, boom and reosion. A financial Analyst predict the following pomible outcomes at each state Standard deviation onomic state Security Security G Boon 40 2.0 Rondon 15 015 etermine the state pron And The way whether arbitrage opportunities exist. Justify your new Question 7 Suppone that the total return for each unit of security H and each unit of security G depends on the economic stateo, boom and recension. A financial Analyst predicts the following ponsible outcomes at each state Standard deviation Economic state Security H Security G Boom 40 2.0 Recession 15 0.5 Determine the state prices 1 and . Then say whether arbitrage opportunities exist. Justify your answer ............. . ............ ......................... Question 7 Suppose that the total return for each unit of curity and each unit of security G depends on these staten, boom and reosion. A financial Analyst predict the following pomible outcomes at each state Standard deviation onomic state Security Security G Boon 40 2.0 Rondon 15 015 etermine the state pron And The way whether arbitrage opportunities exist. Justify your new Question 7 Suppone that the total return for each unit of security H and each unit of security G depends on the economic stateo, boom and recension. A financial Analyst predicts the following ponsible outcomes at each state Standard deviation Economic state Security H Security G Boom 40 2.0 Recession 15 0.5 Determine the state prices 1 and . Then say whether arbitrage opportunities exist. Justify your

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