The Arrow-Debreu approach to general equilibrium in an economy has been recognized as one of the most general and conceptually elegant frameworks for the study of financial problems under uncertainty , . Equally well known is its elusiveness when it comes to ready application to practical problems (like capital budgeting) or empirical testing. (See , –.) However, some recent research (see , , , –, , and ) has made a serious attempt to put the state-preference theoretic model in an operational setting. Breeden and Litzenberger  have developed an interesting approach to derive constructively the prices of elementary Arrow-Debreu securities from the prices of call options on aggregate consumption. Banz and Miller  use a similar technique to value capital budgeting projects based on values for state-contingent claims computed from prices of call options written on the market portfolio. The “supershare” securities proposed by Hakansson – and related work by Garman , Ross , etc., have also served to give the so-called “state-contingent” approach a practical flavor.