Consider the decision problem of investing an amount of wealth W=1000000$ into a risky asset with return R={0.2withprobabilityp0.1withprobability1p and into a risk-less asset with risk-free interest rate r=5%. You are a risk averse investor with a CRRA utility function U(WT)=1WT11, where =0.5 and WT is the amount of wealth at the end of the investment. 1. Find the optimal allocation in risky and risk-less assets as a function of the probability p and the initial amount of wealth W invested. How does it depend on p ? Comment on your result. 2. Compute the optimal allocation for a probability p=50% and for p=51%. What is the optimal allocation for p=1 ? Comment. Consider the decision problem of investing an amount of wealth W=1000000$ into a risky asset with return R={0.2withprobabilityp0.1withprobability1p and into a risk-less asset with risk-free interest rate r=5%. You are a risk averse investor with a CRRA utility function U(WT)=1WT11, where =0.5 and WT is the amount of wealth at the end of the investment. 1. Find the optimal allocation in risky and risk-less assets as a function of the probability p and the initial amount of wealth W invested. How does it depend on p ? Comment on your result. 2. Compute the optimal allocation for a probability p=50% and for p=51%. What is the optimal allocation for p=1 ? Comment