.Consider a risk-averse individual in a two-period model with a time separable utility function given by V = u(co) + Bu(c1) = Where co, C1 denote respectively the individual's consumption in periods 0 and 1; and ß > 0 denotes the future discount rate. Let wo denote the individual's wealth at the beginning of period 0. The individual does not have any other source of income and therefore must decide how much to save in period 0 in order to be able to consume in period 1. Assume that there is only one fund of savings available which is risky: one unit of saving invested in this fund earns a return of (1 + r), where ř is a random variable with E(8) = ro. = (0) (ii) Derive the first order condition for the individual's optimal level of savings. Derive and check the second order condition to ensure that this is a true maximum. [8 marks]