7. The standard utility function U(rp, 0%) = Erp - 40%, where denotes the return on the portfolio, while on denotes the variance of the portfolio return. Suppose I invest a share w in a risky asset with expected return of 5% with standard deviation of 8% and I invest the rest (1 w) in a risk-free asset paying 1%. What is the Sharpe ratio for the risky asset? Determine the optimal value of w in terms of A