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True or false? Consider an investor with log utility (1a(w) = In(w)). She currently holds some of her wealth invested in the MVE and the

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True or false?

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Consider an investor with log utility (1a(w) = In(w)). She currently holds some of her wealth invested in the MVE and the rest in the riskless asset. Over the course of the next year, the value of her MVE portfolio drops by half and the value of her money in the riskless asset does not change. When re-balancing her portfolio at the end of the year, she should sell some 0t her riskless asset and put the proceeds into the MVE portfolio. 0 True False

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