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Consider historical data showing that the average annual rate of return on the TSX / S&P Composite Index portfolio over the past 6 0 years
Consider historical data showing that the average annual rate of return on the TSXS&P Composite Index portfolio over the past years has averaged roughly more than the Treasury bill return and that the TSXS&P Composite Index standard deviation has been about per year. Assume these values are representative of investors' expectations for future performance and that the current Tbill rate is
Calculate the utility levels of each portfolio for an investor with A Assume the utility function is U Ertimes Asigma Do not round intermediate calculations. Round your answers to decimal places.
WBills WIndex UA
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