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1 7 . A three - state pricing kernel has the following Arrow - Debreu ( AD ) prices: $ 0 . 2 0 ,
A threestate pricing kernel has the following ArrowDebreu AD prices: $ $ and $ What is the riskfree rate of return? Hint: Think of the cashflows that a riskfree investment would offer
A Cannot be computed with the information given
B
C
D
E
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