3. Suppose the average return of the S&P 500 over the last 50 years has been 7.8% with a standard deviation of 20% per year. Also assume the risk free rate is 3.5%. a. Find the optimal weight of the risky asset in a complete portfolio for an individual with a risk aversion coefficient of 2.5. Additionally, calculate the return, standard deviation and utility for the following portfolios.

Weight Index = 1

Weight Index = .75

Weight Index = .35

Weight Index = 0