Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averaged roughly 8% more than the Treasury bill return and that the S&P 500 standard deviation has been about 38% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 4%.

Calculate the utility levels of each portfolio for an investor with A = 2. Assume the utility function is U =E(r) ? 0.5