7.14 The portfolio problem with a Normally distributed risky asset In Example 7.3 we showed that a person with a CARA utility function who faces a Normally distributed risk will have expected utility of the form E[U(W)] w (A/2)ow, where w is the expected value of wealth and is its variance. Use this fact to solve for the optimal portfolio allocation for a person with a CARA utility function who must invest k of his or her wealth in a Normally distributed risky asset whose expected return is p, and variance in return is (your answer should depend on A). Explain your results intuitively.