The investors in Rooster Wealthy Investors Trust have a risk aversion factor of A = 4. Rooster Wealthy Investors Trust asks you to analyse a portfolio that consists of two risky assets and a risk-free asset. In the analysis you are required to (a) Explain what a risk aversion factor of A = 4 implies about the investors who buy units in Rooster Wealthy Investors Trust. (b) The return and risk profile of investors in Rooster Wealthy Investors Trust can be described by the quadratic utility function covered in Lecture 2. Rank the eight companies from the one most preferred by the investors to the least preferred. Show and explain why the companies are ranked in this order.

t ((),) = () / (*)