Manuel is a rational investor whose risk preferences follow the utility function U=E[r]-

0.5A2 . He has decided to allocate his wealth of $100,000 between a portfolio of risky assets

and the risk-free asset. The standard deviation of the portfolio of risky assets is 40% and its

expected return is 25%. The risk-free rate is 7%. The expected return on Manuels complete

portfolio is 20.5%. What is Manuels coefficient of risk aversion?