b) Two securities have the following current prices and payoffs in two equally likely states of nature at the end of the year Payoff (£) Security State 1 State 2 Current price А 10 20 8.1 30 10 9.2 Answer the following: i) What is the one-period risk-free interest rate? (show all the details of your calculation) ii) Suppose now that there are three states of nature and two securities. Discuss the possibility of finding a risk-free portfolio in this scenario.

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