5. Consider the following 2-state, 2-security world: Payoff State 1 State 2 Security Prices $10 $8 $7 $12 34 $5 Security A Security B (1) Calculate the state prices for this economy. (ii) Calculate the shadow riskfree rate for this economy. (ii) Calculate the risk-neutral probabilities for this economy. (iv) in which state is the marginal value of a dollar greatest? Why? (v) What is the value of a project that pays $14 in state 1 and $28 in state 2? [NOTE: you must show all your working) 5. Consider the following 2-state, 2-security world: Payoff State 1 State 2 Security Prices $10 $8 $7 $12 34 $5 Security A Security B (1) Calculate the state prices for this economy. (ii) Calculate the shadow riskfree rate for this economy. (ii) Calculate the risk-neutral probabilities for this economy. (iv) in which state is the marginal value of a dollar greatest? Why? (v) What is the value of a project that pays $14 in state 1 and $28 in state 2? [NOTE: you must show all your working)