3) Consider the asset pricing model with uncertainty in the slide. We derived the asset prices as By[Tou'(y + yn + ez) + (1 - 1)u'(y + y + ez)] Pb u'(ei) B[tynu'(y + yn + ez) + (1 t)yu'(y + y + e)] u'(ei) in the class. We showed that Pb > Ps in the class if u"(x) 0. Now prove that Pp = Ps if u"(x) = 0 for all x > 0. (Hint: u'(x) = 0 for all x > 0 means that u'(x) is constant for all x > 0) Ps = 3) Consider the asset pricing model with uncertainty in the slide. We derived the asset prices as By[Tou'(y + yn + ez) + (1 - 1)u'(y + y + ez)] Pb u'(ei) B[tynu'(y + yn + ez) + (1 t)yu'(y + y + e)] u'(ei) in the class. We showed that Pb > Ps in the class if u"(x) 0. Now prove that Pp = Ps if u"(x) = 0 for all x > 0. (Hint: u'(x) = 0 for all x > 0 means that u'(x) is constant for all x > 0) Ps =