Consider historical data showing that the average annual rate of return on the a particular stock portfolio over the past 80 years has averaged roughly 9% more than the Treasury bill return and that the stock portfolio 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 6%. Calculate the utility levels of each portfolio for an investor with A = 2. Assume the utility function is U = E(r) 0.5 A2.

WBills	WIndex	U(A = 2)
0.0	1.0
0.2	0.8
0.4	0.6
0.6	0.4
0.8	0.2
1.0	0.0