Supppose there are two periods, 0 and 1. Denote Stochastic discount factor by m(s1), where s1is a random state, s1S and Expectation under physical probabilities by E. Denote the payoff of an asset in each state by v(s1). Select all (possibly multiple) claims which are true.

Select one or more:

1. Discount factor = E[m(s1)]
2. The price of the asset at period 0 = E[v(s1)m(s1)]
3. Atomic (Arrow securities) prices are equal to the stochastic discount factor for each state times the probability of each state.
4. Risk neutral probability is equal to the stochastic discount factor for each state times the probability of each state divided by E[m(s1)].
5. The stochastic discount can be negative (for standard instantaneous utility we considered)