Suppose your initial wealth is $100 and that you can borrow or lend up to $100 at the riskless rate of interest of 5% during the course of the next year. Given this information, describe the most profitable riskless trading strategy which can be implemented, and calculate the profit from implementing this strategy

The following table lists the state-contingent returns on Security A (rAs) and Security B (TB,x): TB,8 State of Economy Bust Boom 50% 50% TAS -0.2000 +0.4000 +0.2500 -0.0500