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Suppose an investor's risk aversion A=2 and the variance of the return of the portfolio he chose is 0.0260. The risk-free rate is 1.5%. The

Suppose an investor's risk aversion A=2 and the variance of the return of the portfolio he chose is 0.0260. The risk-free rate is 1.5%. The value of the portfolio has 0.3 probability to go to $2000 in one year, 0.4 probability to $1500 and 0.3 probability to $1000. What is the maximum price he would pay for this portfolio Please show your work.

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