Investor A has a square root utility function (i.e., U(W) =

logarithmic utility function (i.e., U (W ) = ln W ). Both investors have initial wealth W0 = $1, 000 and must decide how much how much to invest in a bond and how much to invest in a stock. The current (t = 0) prices of the bond and stock are B0 and S0 respectively.

Both investors expect to receive income from selling these securities at their t = 1 prices, which are B1 for the bond and S1 for the stock. Since the bond is risk, its t = 1 price is known with certainty to be B1 = B0(1+r), where r is the risk rate of interest. The price of the stock at t = 1 can be high or low; i.e., it will be S0(1+s) with probability .6 and it will be S0(1-s) with probability .4. Furthermore, assume that r = .02 and s = .12.

A. How much (in dollars and percentages) of Investor A's initial wealth should be invested in the stock and in the bond?

B. How much (in dollars and percentages) of Investor B's initial wealth should be invested in the stock and in the bond?

0/1 points | Previous Answers SCalcETS 2.5.023 How would you "remove the discontinuity" of f? In other words, how would you define f(5) in order to make f continuous at 5? f(x) = x2 - 3x - 10 x - 5 f(5) = 18 X Need Help? Read It Watch It Talk to a Tutor5 QUESTION 7 Use derivative rules to find y', and use it to calculate y' at the given x. Enter only y' at the given x in the answer box. P=12 4x, x =16 QUESTION 8 Use derivative rules to find y' and use it to calculate y' at the given x. Enter only y' at the given x in the answer box.Remaining Time: 21 minutes, 00 seconds. Question Completion Status: QUESTION 7 How are these accounts added to the Chart of Accounts (COA]? O Add subaccounts by selecting New from the Chart of Accounts window, then enter the Account Type, and enter a name. Add subaccounts by selecting New from the Chart of Accounts window, next hit the + sign in the upper right corner, then enter the Account Type, select Detail Type and enter a name. Add subaccounts by selecting New from the Chart of Accounts window, then enter the Account Type, select Detail Type and enter a name. Check Sub-account box to confirm the account is a subaccount. O Add subaccounts by selecting New from the Chart of Accounts window, then enter the Category Type, select Detail Type and enter a name. QUESTION S Financial statements include: Balance Sheet, Profit and Loss Statement, and Notes to the Financial Statements @ Tax Return, Balance Sheet, Profit and Loss Statement, and the Statement of Cash Flows Balance Sheet, Profit and Loss Statement, and the Statement of Cash Flows Tax Return, Statement of Cash Flows, and Balance sheet QUESTION 9 Chick Save and Submit to save and submit. Click Save All Areevers to save off answers. She All An MacBook Pro O Q. Search or type URL 3 5 6 8 9 O T U O P W E R Y D F G H J KEntries for Issuing par stock Instructions Chart of Accounts Journal Final Question E Instructions X On January 22, Jofferson County Flocks Inc., a marble contractor, Issued for cash 70,300 shares of $45 par common stock at $50, and on February 27, It Issued for cash 18,450 shares of preferred stock, $10 par at $15. Required: a Journalize the entries for January 22 and February 27. Aster to the Chart of Accounts for exact wording of account titles. b. What is the total amount invested (total paid-in capital) by all stockholders as of February 27