Yes you are right - that is half the answer. More particularly I am interested in the relationship between lambda i and lambda j, etc.

<t>Hi,I am interested in pricing an asset that depends upon 2 underlying non-traded assets. Should the prices of risk for the 2 underlying factors be made linearly dependent? For example, in equilibrium the price of risk scaled by asset vols should be equal across different assets.Any assitance or e...