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i do not understand how to answer this question what formula do i use and how to answer all the parts ? Question 2 Suppose

i do not understand how to answer this question what formula do i use and how to answer all the parts ?

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Question 2 Suppose that MrX's utility function for inter-temporal consumption is: x/C'i + P 1 a) [Jr-(00:01): V00 + Where Cu is his current period consumption, 01 is his future period consumption and p is his subject rate of time preference. Let p be 7%. If Mr X is endowed with 500 this period and 500 in the next period. And suppose the risk-free interest rate is 5%. i Draw the capital market line that Mr X is facing. States the precise X-interoept and YIntercept. What does the value of X~Intercept mean? ii What is his optimal consumption path (i.e., the optimal level of current and future consumption) if he can only allocate wealth through lending and borrowing? iii Suppose now he discovers an investment opportunity. This is a risk-free project that needs initial investment of 400 and it generates 425 in the next period. What is his optimal consumption path now

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