To be continued 1. without the securities market she consumes her endowments: Ca=100. Cb=25 2. with the security market, she sell 37.5 unit of security a and buy 37. 5 units of security b. he er consumption is Ca =62.5. and cb=62.5. the same in the two states she is better off 3. At endowment, she prefer l in state b over 1 in state a 4. At the optimal consumption. she is indifferent between 1 in state a and 1 in state bTo be continued 1. Without the securities market, she consumes her endowments: C a=100, C b=25; 2. With the security market, she sell 37.5 unit of security a and buy 37.5 units of security b. Her consumption is C a=62.5, and C b=62.5, the same in the two states, she is better off; 3. At endowment, she prefer 1 in state b over 1 in state a; 4. At the optimal consumption, she is indifferent between 1 in state a and 1 in state b