Consider three assets A, B and C whose payoﬀs in the in the two states ω1 and ω2 are shown below. Only two of these three assets are traded in a certain market.
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A B C
ω1 78 87 66
ω2 39 35 33
Markets are not complete if asset________ and asset ______ are traded.
(A) A, B
(B) A, C
C (D) Markets are incomplete for more than one of the above combinations (E) Not enough information is supplied to conclude any of the above. Get Economics homework help today
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