1. Suppose there are n risky assets with normally distributed payoffs , and no risk-free asset. Assume all investors have CARA utility and no labor income. Define a to be the aggregate absolute risk aversion defined by 1 = i_ (1/a)* Let 7 = (,...,n) denote the vector of supplies of the n risky assets. Let denote the mean and the covariance matrix of the vector X = (,...,n)' of asset payoffs. Assume is nonsingular. There is no consumption at date 0. Show that the vector p = ( - 7) is an equilibrium price vector for any > 0. Hint: Solve each investor's portfolio choice problem subject to the budget constraint p'0 = Who. Next show that the markets clear, using the budget constaints to eliminate the Lagrangian multipliers.