You observe that a consumer with a power utility function in consumption U=400C0.5 and a subjective discount factor of value 5/6, chooses to consume 400 today and a distribution of consumption next period such that the expected value of marginal utility is 12 and a standard deviation of marginal utility is 1. There is a single financial asset with an expected net return of x and this asset has a standard deviation of return of y and a correlation of -0.8 with the individual's marginal utility of future consumption. What is the relationship between x and y if the individual is maximising utility? (10 marks) Explain how the Consumption-based CAPM provides an understanding of the risk of an asset and discuss how this is illustrated in terms of the relationship between x and y (15 marks)