In the context of the optimal saving-consumption problem in the presence of a risky asset, as described

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In the context of the optimal saving-consumption problem in the presence of a risky asset, as described at the end of Sect. 3.4, show that if the coefficient of relative risk aversion is greater than one and decreasing, then the condition \(x p_{u}(x)>2\), for all \(x \in \mathbb{R}\), is satisfied. In particular, the optimal saving \(s^{* * *}\) increases with respect to an increase in the riskiness of the risky asset's return.

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