,ak), and recall Consider a market with N risky assets and 1 riskless asset. Assume that = (wi, the matrix 1+R Sl(2). S (2) A= We have shown that the market is complete if and only if Ah-X has a solution for any X E RK, Using this fact to give a proof of the 2nd Fundamental Theorem of Finance: "The market is complete iff the risky neutral measure, if exists, is unique" (Hint: recall that a risk neutral measure Q is defined as a probability measure such that (i) Q(wh) > 0, k = 1, , K, and (ii) si = S- ,ak), and recall Consider a market with N risky assets and 1 riskless asset. Assume that = (wi, the matrix 1+R Sl(2). S (2) A= We have shown that the market is complete if and only if Ah-X has a solution for any X E RK, Using this fact to give a proof of the 2nd Fundamental Theorem of Finance: "The market is complete iff the risky neutral measure, if exists, is unique" (Hint: recall that a risk neutral measure Q is defined as a probability measure such that (i) Q(wh) > 0, k = 1, , K, and (ii) si = S