4. Assume that a representation agent behaves according to the consumption CAPM theory. Output can take on two values. In a recession Y, = 0.5 and in a boom Y, = 1.5. Assume that the agent has log utility and that the discount factor is 0.99. Exogenous out evolves according to the following transition matrix is given by [.8.2 T= .2.8 Find the optimal prices of output in the two states. 4. Assume that a representation agent behaves according to the consumption CAPM theory. Output can take on two values. In a recession Y, = 0.5 and in a boom Y, = 1.5. Assume that the agent has log utility and that the discount factor is 0.99. Exogenous out evolves according to the following transition matrix is given by [.8.2 T= .2.8 Find the optimal prices of output in the two states