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An investor is given the following information: Explaining the method(s) and the underlining concept(s),...

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Accounting

An investor is given the following information:
Explaining the method(s) and the underlining concept(s), how could the investor use Arrow-
Debreu pure securities to replicate the payoff of security x and security Y? What are the
prices of pure security 1 and pure security 2?
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