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e ) For the remaining parts of the problem, assume that P 3 = 5 0 . Compute the state price vector. Is the state

e) For the remaining parts of the problem, assume that P3=50. Compute the state
price vector. Is the state price vector unique?
(f) Compute the stochastic discount factor.
(g) Suppose that a fourth security is introduced that pays 200 in a recession, 100 in
normal times, and 0 in a boom. What is the no-arbitrage price of Security 4?
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