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 $A=3.$ Assume the utility function is $U=E(r)-0\mathrm{.}5A{}^2.($Negative

amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to $4$ decimal places.$)$

wbills windex

$\mathrm{.}01\mathrm{.}0$

$\mathrm{.}2\mathrm{.}8$

$\mathrm{.}4\mathrm{.}6$

$\mathrm{.}6\mathrm{.}4$

$\mathrm{.}8\mathrm{.}2$

$1\mathrm{.}0\mathrm{.}0$