Question: . Please note the following formulas for the coefficient of absolute risk aversion A(W) as well coefficient of relative risk aversion R(W): A(W) = -U

. Please note the following formulas for the coefficient of absolute risk aversion A(W) as well coefficient of relative risk aversion R(W): A(W) = -U" (W2 U (W) R(W) = -WU"(W) U'(W) Warren is risk-averse and has the utility function U(W) = In(W), where W> 0. Please determine Warren's coefficient of absolute risk aversion A(w). Assume that Warren's wealth increases. What happens to his absolute risk aversion in this case? What does this imply for the share of risky assets in Warren's portfolio? 20 Please calculate Warren's coefficient of relative risk aversion R(W). What does your result imply for the share of risky assets in Warren's portfolio if his wealth changes

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