{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-21T22:01:56-04:00", "answer_date": "2024-05-21 22:01:56", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1475839", "url": "\/study-help\/questions\/consider-historical-data-showing-that-the-average-annual-rate-of-1475839", "question_creation_date_js": "2024-05-21T22:01:56-04:00", "question_creation_date": "May 21, 2024 10:01 PM", "meta_title": "[Solved] Consider historical data showing that the | SolutionInn", "meta_description": "Answer of - Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 year | SolutionInn", "meta_keywords": "historical,data,showing,average,annual,rate,return,s,500,portfolio,85,years", "question_title_h1": " 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", "question_title": " Consider historical data showing that the average annual rate of return", "question_title_for_js_snippet": "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 5 Calculate the utility levels of each portfolio for an investor with A 2 Assume the utility function is u E(r) 0 5 Ag (Do not round intermediate calculations Round your answers to 4 decimal places Negative amounts should be indicated by a minus sign WBills WIndex U(A 2) 0 0 1 0 0 1339 X 0 2 0 8 0 1140 X 0 4 0 6 0 0980 0 6 0 4 0 0820 x 0 8 0 2 0 0660 X 1 0 0 0 0 0500", "question_description": "\"image", "transcribed_text": "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 5%. Calculate the utility levels of each portfolio for an investor with A-2. Assume the utility function is u E(r) 0.5 Ag. (Do not round intermediate calculations. Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign. WBills WIndex U(A = 2) 0.0 1.0 0.1339 X 0.2 0.8 0.1140 X 0.4 0.6 0.0980 0.6 0.4 0.0820 x 0.8 0.2 0.0660 X 1.0 0.0 0.0500", "related_book": { "title": "Managerial Accounting", "isbn": "9789813155497, 73379581, 9813155493, 978-0073379586", "edition": "2010 Edition", "authors": "John J. Wild, Ken W. Shaw", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/115.jpg", "uri": "\/textbooks\/managerial-accounting-2010-edition-115", "see_more_uri": "" }, "free_related_book": { "isbn": "331972388X", "uri": "\/textbooks\/security-privacy-and-anonymity-in-computation-communication-and-storage-10th-international-conference-spaccs-2017-guangzhou-china-december-12-15-2017-proceedings-lncs-10656-1st-edition-978-3319723884-239512", "name": "Security Privacy And Anonymity In Computation Communication And Storage 10th International Conference Spaccs 2017 Guangzhou China December 12 15 2017 Proceedings Lncs 10656", "edition": "1st Edition" }, "question_posted": "2024-05-21 22:01:56", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/applied-calculus\/water-is-pumped-out-of-a-holding-tank-at-a", "description": "Water is pumped out of a holding tank at a rate of 5 5e 0.12t liters\/minute, where t is in minutes since the pump is started. 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