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Consider the baseline asset pricing model our slide. Pyu'(Pb(1-9b)+ez) Prove that the function in equation (3) given by (Pb,9v) = increases with po u'(ybqb+ez) (q)
Consider the baseline asset pricing model our slide. Pyu'(Pb(1-9b)+ez) Prove that the function in equation (3) given by (Pb,9v) = increases with po u'(ybqb+ez) (q) i,e show that > 0, if utility function satisfies that for all x > 0, u"(x) 0
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