Prove that if there is a strictly positive vector of state-prices (psi in R^{K}) such that (V=Gamma

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Prove that if there is a strictly positive vector of state-prices $\psi \in R^{K}$ such that $V=\Gamma \psi$, then there are no arbitrage opportunities.

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Theoretical Foundations Of Corporate Finance

ISBN: 97999

1st Edition

Authors: Joao Amaro De Matos

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Question Posted: May 22, 2024 02:01 AM

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Prove that if there is a strictly positive vector of state-prices (psi in R^{K}) such that (V=Gamma

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Theoretical Foundations Of Corporate Finance

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