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Your client would like to invest $10,000 in two risky assets A and B where Stock A has an expected return of 4% and standard

Your client would like to invest $10,000 in two risky assets A and B where

Stock A has an expected return of 4% and standard deviation of 10%

Stock B has an expected return of 6% and standard deviation of 20%

correlation (A,B)=0.5

Her utility function is U(, ) = 2, where her risk aversion is 3. How much should you invest in stock A and B so that she can receive the greatest utility?

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