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Question 1. Suppose the prices of the assets S and S2 are given by Sj;t = Sjoe (jo/2)t+oW, for j = 1,2. Suppose that

Question 1. Suppose the prices of the assets S and S2 are given by Sj;t = Sjoe (jo/2)t+oW, for j = 1,2. Suppose that > 2. Construct a portfolio consisting of positions in S and S such that the initial investment is 0, but it will always give a positive profit in the future.

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