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Mrs. R has an initial wealth W 0 =1,000,000. Her state-specific utility as a function of her wealth is given by the equation below. Compute

Mrs. R has an initial wealth W0=1,000,000. Her state-specific utility as a function of her wealth is given by the equation below. Compute her overall optimal portfolio by investing her wealth in assets A, B and the risk-free asset.

() = 1/ 2,500,000 2

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