The problem below seems to omit some important assumptions. It's hard to get a precise answer for assets prices.

The trick I think is to find the stochastic discount factor.

Suppose that an economy is defined by a probability measure, P' = (0.89 0.10 0.01 ) , two assets with payoffs D' = 1.02 1.02 1.02 1.025 0.985 0.925 denominated in a consumption good, and a representative agent with utility function U (C) = where C is the agent's consumption. The agent consumes 1 unit of con- sumption in the initial period. 1. Let y = 5. What are the prices of the assets