Varian Microeconomics analysis11.7. Let R1 and R2 be the random returns on two assets. Assume...

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Varian Microeconomics analysis11.7.  Let R1 and R2 be the random returns on two assets. Assume thatR1 and R2 are independently and identically distributed. Show that anexpected utility maximizer will divide her wealth between both assets providedshe is risk averse; and invest all her wealth in one of the assets ifshe's risk loving.Need full workout

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Assignment R1 and R2 
Varian Microeconomics analysis 
11.7. Let R1 and R2 be the random returns on two assets. Assume thatR1 and R2 are independently and 
identically distributed. Show that anexpected utility maximizer will divide her wealth between both assets 
providedshe is risk averse; and invest all her wealth in one of the assets ifshe's risk loving. 
Need full workout
Given that R1 and R2 are independently and identitically distributed assets. 
They are randomly selected. 
Let r1 be the return on R1 and r2 be the return per year on R2. 
Any investor in assets normally takes into account the following important points before investing:

Varian Microeconomics analysis 11.7. Let R1 and R2 be the random returns on two assets. Assume thatR1 and R2 are independently and identically distributed. Show that anexpected utility maximizer will...

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