will upvote if correct.

Prove that when Zmvp = rf: the portfolio of risky asset w on page 39 of Lecture Notes 2 satisfies eTw= 0. e The Case zmup = rf* When imup = rf, the optimal portfolio (wo, w) is given as wo = 1, U= (8-1--r--e), where X= 2-T -17 : -le Note that ew=0 It is optimal to allocate all initial wealth in the risk-free asset, and invest in a self-financing portfolio w 39/41 The Case zmup = rf r rs o 40/41 Rofarono Prove that when Zmvp = rf: the portfolio of risky asset w on page 39 of Lecture Notes 2 satisfies eTw= 0. e The Case zmup = rf* When imup = rf, the optimal portfolio (wo, w) is given as wo = 1, U= (8-1--r--e), where X= 2-T -17 : -le Note that ew=0 It is optimal to allocate all initial wealth in the risk-free asset, and invest in a self-financing portfolio w 39/41 The Case zmup = rf r rs o 40/41 Rofarono