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Consider historical data showing that the average annual rate of return on the S 8 P 500 portfollo over the past 85 years has averaged

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Consider historical data showing that the average annual rate of return on the S 8 P 500 portfollo over the past 85 years has averaged roughly 8% more than the Treasury bill return and that the S\&P 500 standard devation has been about 20% per year. Assume these values are representathe 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=3. Assume the utity function is v=(r)=0.54a2. (Negotive amounts should be indicated by o minus sign. Do not round intermediote calculations, Round your answers to 4 decimol places.) Consider historical data showing that the average annual rate of return on the S 8 P 500 portfollo over the past 85 years has averaged roughly 8% more than the Treasury bill return and that the S\&P 500 standard devation has been about 20% per year. Assume these values are representathe 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=3. Assume the utity function is v=(r)=0.54a2. (Negotive amounts should be indicated by o minus sign. Do not round intermediote calculations, Round your answers to 4 decimol places.)

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