FINA 306 Financial Economics

Explain your working in detail, and please don't leave starting this assignment until the last minute. Most of the questions contain twists that make them more difficult than they appear on a first reading.Questions are attached in png file

SCHOOL OF ECONOMICS AND FINANCE VICTORIA UNIVERSITY OF WELLINGTON FINA 306 Financial Economics Assignment Due at 3:40pm 011 Tuesday, October 9, 2018 Eaptain your working in detail, and please don't tease starting this assignment until the last minute. Most of the questions contain twists that make them more diicutt than they appear on a rst reading. 1. (Decisionmaking under uncertainty) Suppose that there are two states of nature that can occur at date 1. In state 1 the All Blacks win the Rugby World Cup in 2019, in state 2 they do not win the Rugby World Cup. Suppose that the All Blacks will win with probability p satisfying 0