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Compute the discount factor

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There are two future states and two securities with the associated payments matrix (states x securities) Q = (8.21.12,8) The first security current arbitrage - free price is 4.1 and the second security current arbitrage - free price is 5.2. Compute the discount factor (round your answer to 2 decimal points if necessary) Hint the calculations do not require matrix inverse.

Reference no: EM133205262

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