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Assuming no arbitrage, an investor can buy a security that costs $4 and will pay off $11 if state 1 occurs and 0 otherwise. The

Assuming no arbitrage, an investor can buy a security that costs $4 and will pay off $11 if state 1 occurs and 0 otherwise. The investor can also buy another security for $3 that will pay off $11 if state 2 occurs and 0 otherwise, and a third security costing $3 and paying off $11 if state 3 occurs and nothing otherwise. What is the riskless rate?

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