Question: Consider two assets, E and D as follows: E[r] (decimal) risk (decimal) E 0.13 0.17 D 0.09 0.14 The correlation between the two assets is

Consider two assets, E and D as follows:

	E[r] (decimal)	risk (decimal)
E	0.13	0.17
D	0.09	0.14

The correlation between the two assets is 0. How much should an investor with a coefficient of risk aversion of 9.50 invest in E so that her utility is maximized?

Please explain each step :)

thank you!!!

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