(b) The FOC of the problem is 1/c So we have w 1 1 = - Combine with the budget constraint, we can have w-
(b) The FOC of the problem is 1/c So we have w 1 1 = - Combine with the budget constraint, we can have w- 1 c= rk+ C or c2 - rkc- 202 0 We are only interested at the positive root so rktv/r2k2 + 4w2/~ C = 20 2 1 = Orktyr2k2 + 4w2/9
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