5. Consider two investors A and B with quadratic utility functions, ui(w)=w2biw2,i=A,B where bA=0.5 and bB=0.75. Both have initial wealth W0=1. They choose to invest their wealth in a portfolio of two risky assets with returns R1 and R2, respectively. Both agents know that E(R1)=1= 0.25,E(R2)=2=0.05,Var(R1)=12=1, and Var(R2)=22=1.5. The returns are uncorrelated, i.e., Corr(R1,R2)=12=0. a) Between A and B, who is more risk-averse? b) Derive the optimal portfolio weight for the first asset for both agents. c) Do you find the result in b) counterintuitive? Discuss