Calculate the utility levels of each portfolio of Problem 10 for an investor with A = 2. What do you conclude?

Data From Problem 10

Calculate the expected return and variance of portfolios invested in T-bills and the S&P/TSX Composite index with weights as follows:

Consider historical data showing that the average annual rate of return on the S&P/ TSX Composite portfolio over the past 60 years has averaged roughly 8% more than the Treasury bill return and that the S&P/TSX Composite standard deviation has been about 20% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 5%.

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W bills 0 0.2 0.4 0.6 0.8 1.0 Windex 1.0 0.8 0.6 0.4 0.2 0