Question 11. There are two possible states of the world, each occuring with equal probability. There is one risky and one risk-free asset. The risk-free asset has return rf. The risky asset has return ytre in state 1 and r g - jy in state 2. You maximize expected utility and your utility function is log utility, u(x) = ln(x). What fraction of wealth do you put in the risky asset? Question 11. There are two possible states of the world, each occuring with equal probability. There is one risky and one risk-free asset. The risk-free asset has return rf. The risky asset has return ytre in state 1 and r g - jy in state 2. You maximize expected utility and your utility function is log utility, u(x) = ln(x). What fraction of wealth do you put in the risky asset