Recall the market described in Example 1 in Chapter "Arbitrage and the Law of One Price". Suppose security H has a payoff of 1,800 when the economy is strong and 600 when the economy is weak. Recall that the risk-free interest rate is 4% and that each market state is equally likely to occur. (a) Security H has the same payoffs as what portfolio of the securities G and W? (b) What is the no-arbitrage price of security H? (c) What is the expected return of security H? What is its risk premium? (d) What is the difference between the return of security H when the economy is strong and when it is weak? (e) If security H had a risk premium of 10%, what arbitrage opportunity would be available? Recall the market described in Example 1 in Chapter "Arbitrage and the Law of One Price". Suppose security H has a payoff of 1,800 when the economy is strong and 600 when the economy is weak. Recall that the risk-free interest rate is 4% and that each market state is equally likely to occur. (a) Security H has the same payoffs as what portfolio of the securities G and W? (b) What is the no-arbitrage price of security H? (c) What is the expected return of security H? What is its risk premium? (d) What is the difference between the return of security H when the economy is strong and when it is weak? (e) If security H had a risk premium of 10%, what arbitrage opportunity would be available