1). An investor is indifferent between investing 20% and 90% in a risky portfolio with E(r)=16% and standard deviation of 40% and a risk free T-bill yielding 3%. What is the investors risk aversion?

2). Mary's risk aversion is 1.4. What percent of her savings should she invest in a portfolio with E(r)=13% and standard deviation of 21%, if the risk free rate to invest in is 2.9% and the rate at which money can be borrowed is 5.7%?