please show full working out

3. In a finance economy with T = 1 and S = 3 there are four securities, J = 4, with payoffs given by 2 0 1 2 Z= 0 2 1 -1 0 0 0 0 The probabilities of states are (1) = (2) = 3/8 and 7 (3) = 1/4. Se- curity prices are p = P2 = 23 = 1 and p4 = 1/2. Suppose you have a project with payoff 2 = (4/3,2/3,0)'. (1) Compute the pricing kernel. (2) What is the value () of the project with payoff z? 3 3. In a finance economy with T = 1 and S = 3 there are four securities, J = 4, with payoffs given by 2 0 1 2 Z= 0 2 1 -1 0 0 0 0 The probabilities of states are (1) = (2) = 3/8 and 7 (3) = 1/4. Se- curity prices are p = P2 = 23 = 1 and p4 = 1/2. Suppose you have a project with payoff 2 = (4/3,2/3,0)'. (1) Compute the pricing kernel. (2) What is the value () of the project with payoff z? 3