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) - 0.5A * sigma ^ 2 . (Do not round intermediate calculations. Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign .)

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 = Elr) - 0.5 * 402. (Do not round intermediate calculations. Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign.) WBills U(A =2) 0.0 Windex 1.0 0.8 02 04 0.6 0.4 0.6 0.8 1,0 0.2 0.0