Question: Consider an economy with two dates $($today and tomorrow$)$ in which all individuals

have utility

$U(c_0,c_1)=\frac{1}{1-}{c}_0^{1-}+E[\frac{1}{1-}{c}_1({)}^{1-}],$

with $=0\mathrm{.}9$ and $=0\mathrm{.}5.$ In this economy, two assets exists, and they have the following

cash flow distributions at $t=1$ :

Given that all individuals are endowed with $\frac{?}{\text{b}\text{a}\text{r}}(c{)}_0=5\frac{,}{b}ar(c{)}_1=2\mathrm{.}5,$ and $\frac{?}{\text{b}\text{a}\text{r}}(N{)}_j=2,$ what are the

equilibrium prices of the two assets?