1. Consider a complete one-period financial model, where maturity equals one year and interest rate equals r = 0.20. At time 1, there are 4 possible outcomes {w1,W2, W3,w4} that in the physical (real) world have been observed to occur with equal probability . An investor has utility function U(X) = VX and optimal terminal capital 1(wi) = 12$. Compute the initial capital of this investor. (50 pts) Answer 1. Consider a complete one-period financial model, where maturity equals one year and interest rate equals r = 0.20. At time 1, there are 4 possible outcomes {w1,W2, W3,w4} that in the physical (real) world have been observed to occur with equal probability . An investor has utility function U(X) = VX and optimal terminal capital 1(wi) = 12$. Compute the initial capital of this investor. (50 pts)