Hedging. There are eight states of the world. You want to hedge the payoff [oo 0 0 50 100 200 300)' Find the portfolio minimizing the expected squared replication error, using the follow- ing two securities with payoffs [1 1 11111 1]' and [0.80 0.90 0.95 1 1.05 1.10 1.20 1.30]'. The objective probability distribution is [0.05 0.1 0.15 0.20 0.20 0.15 0.1 0.05)'. Hint: use a computer. Hedging. There are eight states of the world. You want to hedge the payoff [oo 0 0 50 100 200 300)' Find the portfolio minimizing the expected squared replication error, using the follow- ing two securities with payoffs [1 1 11111 1]' and [0.80 0.90 0.95 1 1.05 1.10 1.20 1.30]'. The objective probability distribution is [0.05 0.1 0.15 0.20 0.20 0.15 0.1 0.05)'. Hint: use a computer