4. Complete each of the following: (a) Using a mean-variance framework, derive the agent's optimal hedge ratio under forward contracts (You may assume that the agent operates with zero cost). [8 marks] (b) An investor's utility function is given by: WY U() Y where is the investor's level of wealth ( > 0) and y is a constant that is less than 1. Determine the investor's level of risk aversion. [5 marks] (c) Analyze and explain the total risk of an asset under the CAPM Model. [3 marks] (d) Explain how a producer can use American options contracts to hedge against price risk. [3 marks]