2. Consider an investor who has an optimal asset allocation of 60% in equities and the rest in T-Bills. Suppose the expected rate of return on equities is 10% per year and the standard deviation of the return on equities is 15% per year. T- Bills earn 6% per year. a. What is the implied risk aversion coefficient of the investor? b. Use Excel's solver to maximize the investor's utility and confirm that you get a 60% allocation in stocks. 2. Consider an investor who has an optimal asset allocation of 60% in equities and the rest in T-Bills. Suppose the expected rate of return on equities is 10% per year and the standard deviation of the return on equities is 15% per year. T- Bills earn 6% per year. a. What is the implied risk aversion coefficient of the investor? b. Use Excel's solver to maximize the investor's utility and confirm that you get a 60% allocation in stocks