a. If an investors coefficient of risk aversion is A = 3, how does the optimal asset mix change? What are the new values of E(rC) and C?

b. Suppose that the borrowing rate, rf^b = 9% is greater than the lending rate, rf = 7%. Show graphically how the optimal portfolio choice of some investors will be affected by the higher borrowing rate. Which investors will not be affected by the borrowing rate?