Question: write clear and please clear steps Problem 5 (20 pts) Suppose that there are three assets and three states, and the returns matrix is 1.00

write clear and please clearsteps

Problem 5 (20 pts) Suppose that there are three assets and three states, and the returns matrix is 1.00 1.00 1.20 R = 1.05 1.05 1.05 0.95 1.10 0.95 Determine if there exists an arbitrage portfolio for the returns matrix R . Solution

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