=t. i=1 Assume V identical agents in this economy; that is, for i=1 to V, E:[2], E[Z] and t; Substituting your solution for individual demand into the market clearing condition _D; = Q, solve for the equilibrium price of the risky asset. The aggregate risk bearing capacity of investors in this economy is Vt. What happens to the price as individual risk tolerance approaches infinity? What happens to the price as the number of agents who know about this stock (its visibility, W) approaches infinity? With finite risk bearing capacity, is price always less than Z, the rational expectation of Z? > > =t. i=1 Assume V identical agents in this economy; that is, for i=1 to V, E:[2], E[Z] and t; Substituting your solution for individual demand into the market clearing condition _D; = Q, solve for the equilibrium price of the risky asset. The aggregate risk bearing capacity of investors in this economy is Vt. What happens to the price as individual risk tolerance approaches infinity? What happens to the price as the number of agents who know about this stock (its visibility, W) approaches infinity? With finite risk bearing capacity, is price always less than Z, the rational expectation of Z? > >