An investor.s initial wealth is $30; 000: The riskless asset has a rate of return equal to 1: The rate of return of the risky asset is 1:03 with...

3. 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.