(Answered) An investors initial wealth is 30 000 the riskless asset

Economics

An investors initial wealth is $30; 000: The riskless asset has a rate of return equal to 1:05: The rate of return of the risky asset is 1:03 with probability 33 100 ; and 1:06 with probability 67 100 : The von Neumann-Morgenstern utility function is ln (): Find the amount of wealth that the investor puts into the risky asset.

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Business Economics, Economics

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