Lucy and Ricky live in a two-penod, two-state exchange economy. They have the same utility function, C.C.CO) -1-xInCo)+41-2|ln|C.)***{1-2 nC). Aggregate income of the economy (CDP) is allocated through risky stock M (the Market). There is also a niskless bond that pays $1. As in the lectures, the lower-left origin of the Edgeworth box refers to Lucy (for those who wish to visualize thas). 0.46 -Taste parameter 2 0.33 Probability of state a 7100, 107, 98) Aggregate income or endowment Fo. F. El 140,43,591 - Lacy's endowment 4.4) 50 - Outstanding shares of M 1. What is the expected growth rate of the economy? Mark value 1 Anawer type: Real number 2 How many shares of M does Ricky hold in his endowment! Mark value 1 Answer type: Real miamber negative short) 3. How many bonds does Ricky hold in his endowment? Mark value: 1 Answer type. Real number negative - short) 4. What is the equilibrium price of M? Mark value ! Answer type: Real number 5. What is the equilibrium price of F? Mark value 1 Answer type: Real niamber 6. How many shares of M does Ricky hold in equilibrium? Mark value: 1 Answer type: Real number (negative - short) 7. How many bonds does Ricky hold in equilibrium? Mark value: 1 Answer type Real number (negative - short) & What is Ricky's equilibrium consumption in state b? Mark value: 1 Answer type: Real number 9. What is the risk premium in equilibrium? Mark value: 1 Answer type: Real number 10. The risk premium would be bigger if Lucy and Ricky's taste parameter, was bigger. Mark value: 2 Answer type: True or False Lucy and Ricky live in a two-penod, two-state exchange economy. They have the same utility function, C.C.CO) -1-xInCo)+41-2|ln|C.)***{1-2 nC). Aggregate income of the economy (CDP) is allocated through risky stock M (the Market). There is also a niskless bond that pays $1. As in the lectures, the lower-left origin of the Edgeworth box refers to Lucy (for those who wish to visualize thas). 0.46 -Taste parameter 2 0.33 Probability of state a 7100, 107, 98) Aggregate income or endowment Fo. F. El 140,43,591 - Lacy's endowment 4.4) 50 - Outstanding shares of M 1. What is the expected growth rate of the economy? Mark value 1 Anawer type: Real number 2 How many shares of M does Ricky hold in his endowment! Mark value 1 Answer type: Real miamber negative short) 3. How many bonds does Ricky hold in his endowment? Mark value: 1 Answer type. Real number negative - short) 4. What is the equilibrium price of M? Mark value ! Answer type: Real number 5. What is the equilibrium price of F? Mark value 1 Answer type: Real niamber 6. How many shares of M does Ricky hold in equilibrium? Mark value: 1 Answer type: Real number (negative - short) 7. How many bonds does Ricky hold in equilibrium? Mark value: 1 Answer type Real number (negative - short) & What is Ricky's equilibrium consumption in state b? Mark value: 1 Answer type: Real number 9. What is the risk premium in equilibrium? Mark value: 1 Answer type: Real number 10. The risk premium would be bigger if Lucy and Ricky's taste parameter, was bigger. Mark value: 2 Answer type: True or False
