Problem
Assume a finite state of economy with three states whose payoff matrix is given byX = $30 $ 20 $ 10 $20 $15 $0.
1) What are the payoffs of the finite asset?
2) Is the third asset redundant and why?
3) Is the second asset redundant and why?
4) Is the market complete?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.