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Consider historical data showing that the average annual rate of return on the S&P 500 portfollo over the past 85 years has averaged roughly 8%

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Consider historical data showing that the average annual rate of return on the S\&P 500 portfollo 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 35% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 3%. Calculate the utility levels of each portfollo for an investor with A=3. Assume the utility function is U=()=0.5 Ao 2. ( Negotive omounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places.)

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