Consider an economy with three possible states: bad, normal,…

Consider an economy with three possible states: bad, normal, and good. The probability of each state is given in the array of probabilities “p”  below. The payoff of a risky stock in each state is given in the array R.  p = np.array([0.1, 0.6, 0.3]) R = np.array([[0.05], [0.03], [-0.01]]) If we want to compute the expected return on this risky asset, what is the command line we should execute in Python?

Consider the code below with numbered lines:1)def h(x): 2) r…

Consider the code below with numbered lines:1)def h(x): 2) return np.exp(-x**2 / 2) / np.sqrt(2 * np.pi) 3) 4)x = np.linspace(-4, 4, 51) 5)y = np.zeros_like(x) 6) 7)for i in range(len(y)-1): 8) y[i] = h(x[i]) 9)plt.plot(x, y) If we run the code above, we will receive an error. In which line lies the error?