Suppose that the risk-free rate is 3% and that the corresponding optimal risky portfolio has an expected return of 15% and a standard deviation of 20%. Consider an investor with preferences represented by the utility function U = E(r) - 0.5Asigma^2, where A = 2. (a) What fraction of her wealth should she invest in the risky portfolio? (b) Should she invest more or less fraction of her wealth in the optimal risky portfolio if she is more risk-averse? Why? (c) Should she invest more or less fraction of her wealth in the optimal risky portfolio if the optimal risky portfolio offers a higher expected return (but the same standard deviation)? Why