Question: The Arrow - Debreu model has three states and three assets: one is risk - free and two are risky. The initial price vector is

The Arrow-Debreu model has three states and three assets: one is risk-free and two are risky. The initial price vector is
. The payoff matrix is:
(a) Find the state price vector:
(b) Find the rate of return on the risk-free asset (as percentage):
%
(c) Find the no-arbitrage price of Arrow-Debreu security
.

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