Investor A B Risk Premium on Portfolio 13.5% 12.8% Variance of Portfolio 4.8% 5.5% Question 1 (1 point) What are the degrees of risk aversion (A) for Investors A and B who put all entire wealth in the following portfolio? Risk Aversion for A = 2.8125 and Risk Aversion for B = 2.3273 Risk Aversion for A = 0.5859 and Risk Aversion for B = 0.4231 Risk Aversion for A = 2.9514 and Risk Aversion for B = 2.1245 Risk Aversion for A = 3.2154 and Risk Aversion for B = 3.8175 Question 2 (1 point) What is the relationship between risk premium on portfolio and degree of risk aversion? Investor A will require lower risk premium on portfolio due to higher degree of risk aversion. Investor A will require higher risk premium on portfolio due to higher degree of risk aversion. Investor B will require lower risk premium on portfolio because of higher degree of risk aversion