Amy has a utility function that exhibits both increasing RRA (relative risk aversion) and decreasing ARA (absolute risk aversion). Which of the following statements is TRUE?
a. This is impossible.
b. If her wealth decreases, she decreases the share of her wealth invested in risky assets.
c. If her wealth increases, she increases the share of her wealth invested in safe assets.
d. If her wealth increases, she invests less money in risky assets.
e. None of the rest is true.
