Find amount of wealth that investor puts into risky asset

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An investor.s 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.

Reference no: EM131998124

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