1. Consider the following assets in which to potentially invest: P E[r] 10% 9% Fund ABC Fund DEF Government Bond o[r] 18% 25% 0.3 4% 0% a) Question 1: Without doing any calculations, what which risky asset, ABC or DEF, would you expect to hold more of in the optimal risky portfolio? b) Question 2: What is the weight of ABC in the optimal risky portfolio? c) Question 3: For an investor with a risk-aversion parameter A equal to 3, what is weight of the risk-free asset in the optimal complete portfolio? d) Question 4: For an investor with A>3, do you expect she will hold more, less, or the same amount of the risk-free asset in her optimal complete portfolio compared to the investor in (c)