Jack and Diane, grew up in the heartland, have now been married for 20 years and would like to invest some money. Assume the risk free rate is 3% annually. They take a test that rates their individual risk preference Jack is given a 4 and Diane a 3.(this is A in the equation 6.1 in the book) Using these risk preferences and the below investment choices to answer the following questions for Jack and Diane Asset Expected return Standard Deviation Assets 1. Assets 2 6% 8% 10% 20% Assets 3. 12% 25% Find the risk-free equivalent (U value) for asset 2 for Jack A. 0.75 Find the risk-free equivalent (U value) for asset 3 for Diane B. 913 C. 672 D. 25 Using Asset 1 what is Jack's optimal allocation between risky(y) and risk free(1-y) with no shorting. Please report E. 0 the Y' value. What is Diane's Sharpe ratio for Asset 2? F. 02625 G. 50