Q1(b) Consider the data in the table below for investments A and B. Using the function U(w) = w} - w, calculate which of the two Investments has the higher utility for an investor. [6 Marks) WA WB Probability Outcome Probability Outcome 2/5 9 2/3 10 2/5 1/3 5 1/5 1 Q1(c) The risk-free rate is 2% and the borrowing rate is 5%. The expected return on the risky asset is 11% and standard deviation is 17%. Describe the investment opportunity set available to investors in this case. Your answer should include a graph