When investors want to optimize their utility $($their happiness degree$)$ in investing risk assets, we obtain the following solution for investors to determine their weight y$*$ on risk assets

y$*=[$E$($rp$)-$rf$]/[$A$*$Var$($p$)]$

where E$($rp$)$ is the expected return of p$,$ A is the risk aversion level of investors, Var$($p$)$ is the variance of p$.$

What guidance you can learn from this solution? Pick ALL the right ones.

$1.$ We should put high weight on a risky asset if the expected return of the asset is high

$2.$ We should put a high weight on a risky asset if the risk of the asset if high

$3.$ We should put a low weight on a risky asset if the risk of the asset if high

$4.$ If we are a more risk averse person $($high A$),$ our weight on the risky asset should be lower

$5.$ If we are a more risk averse person $($high A$),$ our weight on the risky asset should be higher

$1,2$

$2,5$

$1,3,4$

$1,2,5$