Problem 3 (type your answer in Word) i) The typical investor in finance literature has a utility function of the form () = 1 1 for some constant , subject to the feasibility constraint > 0 and given that r cannot be 1. The variable z represents the income of the investor. This investor has linear absolute risk tolerance. Evaluate the absolute risk tolerance of the investor, given as () = ()/ (). ii) Another investor appears in the economy with a marginal utility function () = [ 1 1 ] Where e is the exponential function, and is a constant subject to the feasibility constraint > 0. The r cannot be 1. This investor exhibits preferences with flexible risk tolerance. The variable z represents the income of the investor. Parameter (or constant) b represents the concavity of the tolerance of the investor. Evaluate the absolute risk tolerance of this investor, given as () = ()/ ()