Hey could you answer these questions for me

QUESTION 1 Explain briefly the following concepts: i) Arrow securities ii) Risk neutral probabilities [Total: 20 Marks] END OF QUESTION ONE QUESTION 2 A risk averse investor plans to allocate her current wealth between a risk-free asset that offers 1% and a risky asset that offers 21% with 70% probability and -4% with probability 30%. The investor has a utility function of and initial wealth of 100. i) Calculate the amount of wealth allocated on the risky asset that maximizes her expected utility [15 Marks] ii) Will the investor change the portion of wealth invested in the risky asset as her initial wealth increases? Motivate your answer [15 Marks]