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Assume that there are two assets A & B which are identical in every respect. Both assets will have certain values of $ 1 ,

Assume that there are two assets A & B which are identical in every respect. Both assets will

have certain values of $

1, 000

in one year. If the price of asset A today is $

900

and the price of

asset B today is $

925,

can this be an equilibrium? Explain your answer.

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