Question: Must be an answer in Python: Suppose we have an investor that is trying to decide on investing $ 1 0 , 0 0 0
Must be an answer in Python: Suppose we have an investor that is trying to decide on investing $ between two securities a and b Security a costs $ per unit and security b costs $ per unit. A year later, securities a and b will pay dollars and dollars, respectively, in state u; and in state d security a will pay dollars, and security b will pay dollars. The state u is likely to occur with probability while the state d is likely to occur with probability. And the investor's utility function is uw w square root of wealth How many units of each security the investor should buy to maximize the expected utility?
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