Taxation and risk-taking. Use the model in Question 3 to investigate whether increases in (a) a proportional tax on wealth [(w  D)(1  h0 )  D(1  hs)]; (b) a proportional tax on the income from the...

Taxation and risk-taking. Use the model in Question 3 to investigate whether increases in (a) a proportional tax on wealth [(w  D)(1  h0 )  D(1  hs)]; (b) a proportional tax on the income from the portfolio [(w  D)h0  Dhs] increases or reduces investment in the risky asset.