Mr. X invested in a portfolio of risk-free asset and a risky portfolio. Mr. Xs complete portfolio consists of 40% investment in risk-free asset and 60% investment in risky portfolio. Mr. Y invests 100% in the same risky portfolio. The expected return on Mr. Ys risky portfolio is 15%. The risk-free rate is 5%, and Expected return Of Mr. X's Complete Portfolio is 11% If the standard deviation of the risky portfolio is 20%.

It is apparent that Mr. X is more risk averse than Mr. Y, since Mr. Y invests 100% of his fund in risky portfolio, while Mr. X invests only 60%. Numerically derive a value to prove that Mr. Y is less risk averse than Mr. X. You must show all relevant calculations (3 marks).