An investor with initial capital K makes decisions based on utility function U(x) = VX. Assume the investment returns KX1 and K X2 for shares of company 1 and 2 respectively, where X has lognormal LN (1.0). Here w and a stand for annual return rate ( e... H=.09 means 9% per year) and annual volatility (i.e., standard deviation from H) respectively. (a) Show that investment decision is independent of K (b) Let Hi=.12, 0,=.04 and Pa = 1. For what values of 0 will the investor chose to invest in company 2? (c) Show that if expected return on shares from both companies are the same (ie. E[K X1]= E[K X2]) but VIK X1]