Following the study "What do we know about the second moment of financial markets?", you model the realized variance for some asset using the following power law function: p(x)=Cx, where C=(1)xMIN1 with {R+>1},x denotes the respective annualized daily variance of your asset provided x{R+xMINx3. What is the result and what are the consequences? ( 2 points) (Hint: E[X2x>xMIN]=xMINx2p(x)dx=(3)(1)xMIN2.)