5. The following information is available to an investor, Mr A, with degrees of risk aversions as 3 and quadratic utility functions: Security Expected Return Standard Deviation Stock M 10% 5% Stock N 16% 15% Correlation Coefficients 0.5 Find out:- a) the optimal risky portfolio weights, return and risk for this investor with 5,00,000 to invest. b) the optimal risky portfolio weights, return and risk for the investor in the presence of a risk-free asset class providing a return of 8%. c) compute the utilities of the investor. How much decrease in utilities shall be observed by the investor in the absence of a risk-free asset class? d) How much will Mr B with A=9 invest in Stock M, Stock N and T-bills if he also has * 5,00,000 to invest in? e) Which group of investors will not be affected by the prevailing borrowing rate? f) Which group of investors will get affected if investors can borrow only at the rate of 10%? g) Which group of investors will not be bothered about the rate of lending nor borrowing? 5. The following information is available to an investor, Mr A, with degrees of risk aversions as 3 and quadratic utility functions: Security Expected Return Standard Deviation Stock M 10% 5% Stock N 16% 15% Correlation Coefficients 0.5 Find out:- a) the optimal risky portfolio weights, return and risk for this investor with 5,00,000 to invest. b) the optimal risky portfolio weights, return and risk for the investor in the presence of a risk-free asset class providing a return of 8%. c) compute the utilities of the investor. How much decrease in utilities shall be observed by the investor in the absence of a risk-free asset class? d) How much will Mr B with A=9 invest in Stock M, Stock N and T-bills if he also has * 5,00,000 to invest in? e) Which group of investors will not be affected by the prevailing borrowing rate? f) Which group of investors will get affected if investors can borrow only at the rate of 10%? g) Which group of investors will not be bothered about the rate of lending nor borrowing