How do you formulate the investors' optimisation problem?

Consider a pair of investors A and B. There is only one good wealth in their economy. A or B only care only about date t : 1 wealth. (You can assume 5 : 1). At date t : 1 the economy will be either in state 1, or in state 2. The investors agree that state 1 is twice as likely as state 2. In state 1 A will have wealth of 10 and B will have 0. In state 2 A will have 0 and B will have 5. At date 0 neither investor has any wealth but both have access to the nancial markets with the following payoff matrix assets 1 3 states [3 4] Investor B is riskaverse and values his wealth y according to v(y) : 2W. Investor A is riskneutral. Note that, the state levels (3711', W\") of wealth that investor A can reach is: (3q4) y1A+ (3 q) y2A= 10 (3q4) Note that, the state levels (3713, yzB) of wealth that investor B can reach is: (3q4)y13+(3q)y2'3=5 (3q)