1. (10 pts) A consumer may buy or sell an amount x of an asset, i.e., x can be positive or negative. The asset has a random gross return i, with Er = 1. Assume r is nondegenerate, i.e., has a positive variance. Her expected utility given x is Eu(w + rx - x). The utility function u is strictly concave but not necessarily differentiable. Show that the consumer will not buy nor sell any amount of the asset, i.e., her optimal choice is x = = 0. 1. (10 pts) A consumer may buy or sell an amount x of an asset, i.e., x can be positive or negative. The asset has a random gross return i, with Er = 1. Assume r is nondegenerate, i.e., has a positive variance. Her expected utility given x is Eu(w + rx - x). The utility function u is strictly concave but not necessarily differentiable. Show that the consumer will not buy nor sell any amount of the asset, i.e., her optimal choice is x = = 0