Exercise 1. Suppose there are only two possible states of the world that could occur with equal probability. There are two assets (both risky). In the first state, asset 1 pays out $5 and asset 2 pays out $2. In the second state, asset 1 pays out $2 and asset 2 pays out $4. The investor is an expected utility maximizer with a log utility function. Solve for the optimal allocation of wealth to each asset. Exercise 1. Suppose there are only two possible states of the world that could occur with equal probability. There are two assets (both risky). In the first state, asset 1 pays out $5 and asset 2 pays out $2. In the second state, asset 1 pays out $2 and asset 2 pays out $4. The investor is an expected utility maximizer with a log utility function. Solve for the optimal allocation of wealth to each asset