Two assets P and Q have the following statistical properties: E (7-10% Op 10% E(r)--15%, ,-25%. The risk-free rate of interest (on bills) is 5%, and borrowing is not possible. An investor with preferences given by U E(r)- Ao can combine bills with either P or Q hut not both. (a) Explain why this investor would never combine bills with Q unless the weight in (b) Consider a risk-neutral investor (A- 0). Which portfolio would he prefer? Within (e) Consider a risk-averse investor (A > 0). For which values of A would the investor Q were greater than one-half. Use the standard deviation-expected return diagram. that portfolio, what would be the share of the risk-free asset? Show your solution on the -E(r) diagram. combine bills with Q? Two assets P and Q have the following statistical properties: E (7-10% Op 10% E(r)--15%, ,-25%. The risk-free rate of interest (on bills) is 5%, and borrowing is not possible. An investor with preferences given by U E(r)- Ao can combine bills with either P or Q hut not both. (a) Explain why this investor would never combine bills with Q unless the weight in (b) Consider a risk-neutral investor (A- 0). Which portfolio would he prefer? Within (e) Consider a risk-averse investor (A > 0). For which values of A would the investor Q were greater than one-half. Use the standard deviation-expected return diagram. that portfolio, what would be the share of the risk-free asset? Show your solution on the -E(r) diagram. combine bills with