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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%

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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 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 portfolio for an investor with A-2. Assume the utility function is u - ) - 0.5 10. (Do not round intermediate calculations. Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign. Answer is complete but not entirely correct. WBills Windex U(A-2) 0.0 1.0 0.1100 0.2 0.8 70.0940 0.4 0.6 0.0780 0.6 0.4 0.0620 0.8 0.2 0.0460 X 1.0 0.0 0.0300

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