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1f. Assume that Chris has been selected to manage the COAT Portfolio. In addition, suppose...

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Finance

1f. Assume that Chris has been selected to manage the COAT Portfolio. In addition, suppose that the maximum aditional stress level (i.e., maximum marginal loss of utility) that Chris is willing to endure is dU/d = -1.30, please compute the capital allocation on the GOAT Portolio, and the expected return and standard deviation of the COAT Portfolio.
U(C) = E[r] - 0.41 ln(2 + 7)

I can't seem to be able to post the whole question because it's too long. So I basically want to know the steps of finding the weight of the risky portfolio "GOAT" given the utility function and also trying to understand what dU/d = -1.30 means. I can compute the rest of the stuff. Like does the utility function need to = -1.30?

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