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Problem 7. Suppose that a. risk-averse individual can only' invest in two risky securities A and B, whose future returns are described by identical but

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Problem 7. Suppose that a. risk-averse individual can only' invest in two risky securities A and B, whose future returns are described by identical but independent probability,r distributions. How should he allocate his given initial wealth (normalized to 1 for simplicity] among these two assets so as to maximize the expected utility.r of next period's wealth

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